Will it exceed trillions of dollars? Multinational capital targets post-war reconstruction in Ukraine

Aksa Power, located in Istanbul, Türkiye, has branches in Europe, Asia and North America. It is one of the largest generator manufacturers in the world, with customers all over the world. Recently, Aksa Power quietly announced a personnel appointment, deploying a regional manager to the Ukrainian market for the first time.
As the Russia-Ukraine conflict enters its third year, although peace has not yet arrived, no matter how the war ends, the reconstruction of the conflict area is still a "big cake" that attracts global attention. The European Investment Bank estimates that the scale of post-war reconstruction in Ukraine will exceed $1 trillion, which is five times the amount of the Marshall Plan that the United States helped rebuild Western Europe after World War II, even if inflation is taken into account.
In the face of potential large-scale infrastructure orders, enterprises in Türkiye, Germany, Austria and other countries have begun to layout in advance, and Wall Street capital is unwilling to lag behind. They began to "organize the bureau" to carry out project planning in advance and prepare to compete for large orders with industrial capital.
The largest scale reconstruction work after World War I has attracted attention
Ukraine's largest steel mill: requires millions of tons of steel
Recently, Aksa Power announced the dispatch of Salih Komulku to Ukraine as the dedicated regional manager responsible for the country's market. Aksa Power explained that the reason for doing so is not only the recent doubling of orders for backup generators from Ukraine, but also the company's focus on seeking a larger market share in future post-war reconstruction work.
Komulku said, "Everyone is building their own circle here (in Ukraine), and we don't want to stay out of it. We want to get to know every player on this land in advance and get to know everyone here
According to the official website of the European Union, the EU has provided an additional 43.4 billion euros in support funds for Ukraine, in addition to military aid, as a foundation for rebuilding the economy and society. At the Ukrainian Reconstruction Conference held in London, UK in June 2023, the European Commission, European Investment Bank, European Bank for Reconstruction and Development, and International Finance Corporation signed a cooperation agreement to mobilize private sector investors from various countries to participate in post-war reconstruction investment in Ukraine. In addition, European countries such as Germany and Denmark have also implemented separate aid programs for Ukraine.
According to Ukrainian Economy Minister Yulia Sviridenko's estimation, approximately 156000 square kilometers (equivalent to twice the size of Austria's territory) of conflict zones are still potentially affected by bomb attacks and landmines, making restoration and construction very difficult.
The European Investment Bank believes that the investment required for post-war reconstruction in Ukraine may exceed $1 trillion, which is still five times the size of the Marshall Plan after adjusting for inflation. "This will be the largest reconstruction work in the world after World War I.
Metinvest Group, headquartered in the Zaporizhzhia region, is engaged in mining and metal manufacturing industries in Ukraine, Bulgaria, Italy, the United Kingdom, and the United States, and is the largest steel producer in Ukraine. Metinvest Group stated that they are prepared for the amount of steel required for post-war reconstruction. Once large-scale reconstruction work begins, approximately 3.5 million tons of steel will be needed within five to ten years to restore housing and social infrastructure. Our company is ready to meet this demand
70 projects completed by soil based construction companies in 2 years of conflict
Ukrainian conscription is tight, recruitment becomes the most urgent challenge
Omar Borat, Minister of Trade of Türkiye, said earlier this year that Türkiye's construction contractors had completed 70 projects in Ukraine in the first two years after the conflict, with a total value of about $1 billion. Among them, the largest Onur Group in Türkiye is good at repairing bombed bridges. For example, the bridge reconstruction work in Ilpin, a suburb of Kiev, was won by the group. Onur Group has also partnered with South Korean company Samsung Products to build mobile hospitals across Ukraine.
Omre Karahmytoglu, the General Coordinator of the Ounur Group in Ukraine, stated that the group ultimately hopes to take on the reconstruction projects of Dnipro International Airport and some highways. In April 2022, the Ukrainian side claimed that the Russian military had completely destroyed the Dnipro airport using missiles, and the surrounding infrastructure was also damaged.
Emre said, "We have over 4000 machines working day and night here. Currently, our most urgent challenge is to find enough workers against the backdrop of expanding conscription
Dogus Construction Company, headquartered in Istanbul, has been operating in Ukraine for many years and has currently taken on the reconstruction projects of three bridges. The company's representative in Ukraine, Suha Kanatan, stated that future reconstruction work is expected to bring in contracts worth "billions of dollars".
European countries explore how to open up the Ukrainian market
There will be a lot of work in the next few decades
In addition to Türkiye, enterprises in some European countries also began to layout in advance. Hungarian engineering company Ganz Mavag stated that their previous bid to acquire Spanish construction machinery manufacturer Talgo SA was partly to expand production capacity to meet the demand of the Eastern European market in the next decade, and the reconstruction of Ukraine will drive the overall engineering demand in Eastern Europe.
The Danish government has provided targeted support to the port city of Mykolaiv in southern Ukraine, providing funds for clean water, mine clearance, purchase of generators, and pumping of pumps. Danish Ambassador to Ukraine Ole Mikkelsen said during his visit to the city in January this year, 'The situation has improved. It was the first time I encountered traffic congestion here, which shows that life is returning to normal.'.
Jesper Kalup, Technical Director and Project Manager of Danish technology consulting firm Cowi, expressed his hope that the Danish government can establish a good reputation in Ukraine and benefit Danish companies in expanding their markets. We can't wait for the reconstruction to officially begin, and we must take action now to win the market.
In addition to Denmark, companies from Germany, Austria and other countries have also followed in the footsteps of government aid to Ukraine, exploring how to open up the Ukrainian market. German building materials manufacturer Fixit has established a new production base in western Ukraine since last year, while chemical giant Bayer has also announced investments in agricultural seed production in Ukraine.
Waagner Biro is a bridge system engineering company from Austria, specializing in the production of modular steel overpasses spanning rivers and valleys. The company has recently opened a factory in western Ukraine to begin production. Waagner Biro CEO Richard Keshbammer said in an interview, 'We will have a lot of work to do in the coming decades.'.
In the United States, although construction companies cannot easily participate in the competition for project orders like their European counterparts, financial capital is also preparing to take a share. According to reports, JPMorgan Chase has established a "preparatory working group" within the company to plan and sort out the post-war reconstruction project in Ukraine, and is preparing to jointly bid with relevant enterprises. Previously, JPMorgan Chase and asset management giant BlackRock jointly established the "Ukraine Development Fund" to attract private capital, international financial organizations, charitable organizations, and government funds to jointly invest in Ukraine's post-war reconstruction project.