Kuleba: Attracting Private Capital is Essential for the Development of Ukraine’s Transport Sector

Kuleba: Attracting Private Capital is Essential for the Development of Ukraine’s Transport Sector

The construction and modernization of Ukraine’s transport infrastructure require substantial investments from the private sector. This was emphasized by the Deputy Prime Minister for the Restoration of Ukraine – Minister for Communities and Territories Development Oleksiy Kuleba.

This is reported by Finway

Scale of Losses and the Need for Investment

According to RDNA5 estimates, the total losses in the country’s transport sector exceed 121 billion 128 million dollars. This amount is comparable to 115% of Ukraine’s state budget for 2026. Such levels of destruction objectively prevent the state from fully restoring the sector on its own, even if a significant portion of the budget is directed toward these needs.

“The scale of losses in transport and logistics infrastructure due to the war is so great that the state is objectively unable to fully cover them on its own, even if half of the country’s budget is directed toward the rehabilitation of the system. Therefore, the development and modernization of the sector require substantial involvement of private capital,” the minister noted.

Priorities: Security and Economic Resilience

Oleksiy Kuleba emphasized that ensuring the security of transport infrastructure is a top priority in the current conditions. This includes the protection of ports, railway hubs, major roadways, border crossings, and key logistics hubs. State funds should be used for this purpose, while private investments should be directed toward development, technological upgrades, and the creation of new logistics routes and facilities.

The minister stressed that the transport sector remains a vital component of the economy, facilitating agricultural exports, the metallurgy industry, energy resource imports, industrial cargo transportation, and international trade with the European Union.

In modern logistics, roads, railways, ports, checkpoints, warehousing infrastructure, multimodal solutions, digital management systems, and public-private partnership mechanisms are of particular importance.

“State funds should be allocated for security, critical recovery, and resilience. Private capital should focus on development, modernization, new logistics routes, rolling stock, terminals, and PPP projects. This model will not only help sustain the system during the war but also lay the foundation for post-war economic growth,” the minister concluded.