Russia has long used economic influence as a tool of pressure against Ukraine, seeking to weaken its resilience and expand control over strategic sectors of the economy. Once the active phase of the war ends, Russia, together with its allies, is likely to make greater use of hybrid tools of influence, including corrosive capital.
Foreign investment is already flowing into Ukraine’s defense sector and dual-use manufacturing, and the scaling-up of reconstruction will only accelerate this trend. At the same time, Ukraine still lacks a dedicated mechanism for assessing the national security risks associated with foreign capital.
The Economic Security Council of Ukraine (ESCU) is working to help build an FDI screening system in Ukraine that protects the national economy without creating excessive barriers for legitimate investors. ESCU:
- works with the Verkhovna Rada Committee on Economic Development, which is drafting legislation on investment screening;
- analyzes international screening models and best practices;
- develops recommendations tailored to Ukraine’s security and investment context;
- brings together public authorities, businesses, investors, experts, and international partners;
- develops practical approaches to identifying risks related to ownership structures, sources of financing, and control in sensitive transactions.
