Attracting foreign investment as a stimulus for enhancing competition in ukraine’s energy markets

Abstract

These theses examine the role of foreign investment as a key factor in enhancing competition and efficiency in Ukraine’s energy markets amid the post-war reconstruction. The paper emphasizes that foreign capital not only provides essential funding for restoring damaged energy infrastructure but also acts as a catalyst for market modernization, technology transfer, and the introduction of innovative energy solutions, particularly in renewable energy and energy storage systems. The analysis highlights the growing interest of international investors in Ukraine’s decentralized and green energy projects, which can stimulate market fragmentation, increase the number of market participants, and promote higher service standards for end consumers. At the same time, the study identifies significant barriers to investment, including high geopolitical risks, regulatory instability, underdeveloped infrastructure, and market concentration. The theses argue that the creation of a transparent and stable regulatory framework, support for decentralized generation, financial incentives, and integration with the European energy market are essential for attracting foreign investment and fostering competition. Overall, foreign investment is presented not only as a tool for post-war infrastructure restoration but also as a driver of sustainable economic growth, market liberalization, and alignment with European energy standards.