Protecting Investments in Ukraine Under Martial Law: Legal, Insurance and Strategic Safeguards for Foreign Investors
Ukraine remains one of the most challenging yet potentially rewarding investment markets in Europe. Despite the ongoing war and the continued operation of martial law, international investors are increasingly examining opportunities in agriculture, renewable energy, infrastructure, logistics, manufacturing, technology, real estate, natural resources and reconstruction-related projects.
For a foreign investor, however, the central question is not simply “What can I buy or build in Ukraine?” but rather “How can I protect my investment if the security, regulatory or economic environment changes?”
Investment protection in Ukraine during wartime therefore requires a broader approach than ordinary corporate due diligence. Legal structuring, contractual protection, insurance against military and political risks, international investment treaties, arbitration mechanisms, asset protection and careful selection of the investment location should all form part of the investment strategy.
According to the specialists of MAYGER LLC, foreign investors should not treat wartime risk as a single issue. It should be divided into several categories and addressed through different legal and financial instruments.
Expert view of MAYGER LLC: “Investment protection in Ukraine during martial law should be structured before the investment is made. A properly designed transaction can combine Ukrainian legal guarantees, international investment protection mechanisms, war-risk insurance, contractual safeguards and corporate structuring. The objective is not to eliminate every risk, which is impossible during an active war, but to make the investment legally protected, commercially manageable and recoverable in the event of an adverse scenario.”
1. Does Ukrainian Law Protect Foreign Investments During Martial Law?
Yes. Martial law does not automatically eliminate the fundamental legal rights of foreign investors.
Ukraine’s investment legislation provides important protections for foreign capital, including safeguards against unlawful nationalization and seizure and guarantees concerning the transfer of legally obtained investment income. Ukrainian legislation also contains a stability mechanism under which certain guarantees applicable to foreign investments may continue for ten years if subsequent legislation changes the relevant conditions, subject to statutory exceptions. (Investment Policy)
This is an important distinction for international investors.
Martial law creates additional restrictions and risks, but it does not mean that foreign investments are outside the Ukrainian legal system.
At the same time, investors should understand that legal protection against unlawful state action is different from protection against physical damage caused by war.
For example:
- Ukrainian investment legislation may protect an investor against unlawful expropriation;
- a bilateral investment treaty may provide additional international remedies;
- a properly drafted shareholder agreement may regulate disputes between shareholders;
- but none of these mechanisms automatically replaces insurance for physical war damage.
Therefore, an effective protection strategy must combine several layers of protection.
2. The Difference Between Investment Protection and War-Risk Protection
One of the most common mistakes made by inexperienced investors is to assume that legal investment guarantees cover all consequences of the war.
They do not.
There are at least four different categories of risk.
Legal and regulatory risk
This includes changes in legislation, licensing requirements, regulatory decisions, restrictions on transactions and other governmental measures.
Political risk
This may include unlawful government interference, discriminatory treatment, expropriation or restrictions affecting the investor’s rights.
Physical war risk
This includes damage to factories, warehouses, agricultural facilities, energy installations, commercial buildings and other assets caused by missile strikes, drones, military operations or other war-related events.
Commercial and operational risk
This includes interruptions to electricity, logistics, supply chains, labour availability, transportation and access to markets.
Each category requires a different response.
The current Ukrainian investment environment increasingly incorporates insurance and guarantee instruments specifically designed to address military and political risks. MIGA, for example, identifies political risk insurance as particularly important for Ukraine because investors require protection against non-commercial risks associated with the war. As of June 2026, MIGA reported $573 million in guarantee issuances in Ukraine since February 2022, with an additional $32 million guarantee under preparation. (Miga)
3. War-Risk Insurance Is Becoming a Core Investment Instrument
War-risk insurance has become one of the most important tools available to investors entering Ukraine.
The Ukrainian Export Credit Agency (ECA) provides insurance mechanisms for direct investments in Ukraine against military and political risks, subject to applicable eligibility requirements and territorial restrictions. (eca.gov.ua)
The development of this market is significant because traditional commercial insurance has historically been reluctant to provide comprehensive coverage for active-war risks.
Ukraine has also introduced mechanisms aimed at reducing the cost of war-risk insurance for businesses. In May 2026, the Ukrainian government reported that four Ukrainian companies had already received partial compensation for insurance premiums, reducing the average insurance cost for those companies from 4.24% to 1.19%. (Міністерство економіки)
In July 2026, the government further simplified procedures for confirming losses under the state war-risk insurance programme and extended the period for submitting applications for insurance-premium compensation. (Міністерство економіки)
This demonstrates an important development: war-risk insurance is gradually becoming part of the infrastructure of investment protection in Ukraine rather than an exceptional financial product.
4. International Guarantees Can Strengthen Investor Protection
Foreign investors should also consider international institutions and national export-credit agencies.
Depending on the investor’s country of origin and the project structure, potential instruments may include:
- MIGA guarantees;
- DFC political-risk insurance;
- export-credit agency insurance;
- national investment guarantee programmes;
- reinsurance arrangements;
- bilateral investment treaty protection;
- international arbitration.
Ukraine Invest has highlighted the involvement of international institutions and export-credit agencies in protecting investments against military and political risks, including MIGA, DFC and European national export-credit institutions. (UkraineInvest)
For larger transactions, MAYGER LLC recommends considering international insurance and guarantee mechanisms before signing the final acquisition or investment agreement, because eligibility and coverage can depend on the structure, timing, location and nature of the investment.
5. Bilateral Investment Treaties and International Arbitration
Another important layer of protection is international investment law.
Ukraine has entered into bilateral investment treaties with numerous countries. Depending on the investor’s nationality and the applicable treaty, an investor may receive protections relating to fair and equitable treatment, protection against unlawful expropriation, transfer of investment proceeds and access to international dispute-resolution mechanisms.
International arbitration can become particularly important where a dispute involves governmental action rather than a simple commercial disagreement.
However, the existence of treaty protection should never be treated as a substitute for careful transaction structuring.
MAYGER LLC’s position is that treaty protection should be analysed before the investment is made, not after a dispute arises.
The investor’s nationality, ownership chain, investment vehicle and transaction structure can materially influence the availability and practical effectiveness of treaty protection.
6. Corporate Structuring Is an Important Part of Investment Protection
A foreign investor should carefully determine how the investment will enter Ukraine.
Possible structures may include:
- direct acquisition of a Ukrainian company;
- acquisition through a Ukrainian subsidiary;
- acquisition of shares or corporate rights;
- acquisition of specific assets;
- joint venture with a Ukrainian partner;
- project company/SPV structure;
- investment through an international holding structure.
The optimal structure depends on the project.
For example, an agricultural investment may require extensive due diligence of corporate rights, land-use arrangements, lease rights, permits and assets. An energy project may require analysis of grid connection, land rights, licences, PPAs, financing arrangements and insurance. An industrial project may require examination of real estate title, environmental matters, infrastructure and reconstruction risks.
MAYGER LLC recommends that investors avoid using a standard corporate structure for every transaction.
The investment structure should be designed around the asset, the investor’s jurisdiction, the financing model, the insurance strategy and the potential dispute-resolution mechanism.
7. Contractual Protection Should Be Designed Before Closing
A strong investment agreement can significantly reduce disputes and clarify the allocation of risks.
Depending on the transaction, an investment or acquisition agreement may include provisions concerning:
- representations and warranties;
- title to assets;
- ownership of corporate rights;
- undisclosed liabilities;
- sanctions compliance;
- force majeure;
- war-related events;
- insurance obligations;
- indemnification;
- limitation of liability;
- conditions precedent;
- termination rights;
- dispute resolution;
- arbitration;
- applicable law;
- confidentiality;
- non-compete obligations;
- change-of-control provisions.
For transactions involving Ukrainian businesses, MAYGER LLC recommends particular attention to pre-closing liabilities.
An investor purchasing a Ukrainian company is not simply purchasing its visible assets. The investor may also inherit historical tax, contractual, employment, environmental, regulatory or litigation risks.
Therefore, legal and financial due diligence should precede the acquisition.
8. Due Diligence Has Become More Important During the War
Due diligence in wartime Ukraine must go beyond traditional corporate checks.
A professional investigation should consider at least:
Corporate due diligence
- shareholders and ultimate beneficial owners;
- corporate history;
- litigation;
- debt;
- related-party transactions;
- corporate approvals.
Asset due diligence
- ownership;
- encumbrances;
- mortgages;
- leases;
- registration;
- technical condition.
Sanctions and compliance
- shareholders;
- counterparties;
- beneficial owners;
- politically exposed persons where relevant;
- sanctions exposure.
Security due diligence
- geographical location;
- proximity to military or critical infrastructure;
- history of attacks in the region;
- logistics;
- availability of alternative facilities.
Financial due diligence
- revenue;
- debt;
- taxes;
- cash flow;
- working capital;
- capital expenditure requirements.
For foreign investors, this process is particularly important because information obtained from the seller should not be accepted without independent verification.
9. Location Is a Critical Element of Investment Protection
The physical location of an investment can materially influence its risk profile.
Ukraine is not a uniform investment-risk environment.
Different regions have different levels of exposure to missile and drone attacks, proximity to the front line, logistics conditions, energy infrastructure and access to international borders.
Consequently, investors should assess location risk before acquiring land, factories, warehouses, energy facilities or agricultural assets.
The Ukrainian Export Credit Agency, for example, applies eligibility requirements concerning the location of insured investment assets and excludes territories where hostilities are ongoing or territories temporarily occupied by Russia under the applicable official territorial classification. (eca.gov.ua)
For this reason, location analysis should be integrated into legal and financial due diligence rather than treated solely as a security issue.
10. Protection of Profits and Repatriation
Foreign investors also need to consider how profits will be transferred from Ukraine.
Ukrainian investment legislation provides guarantees concerning the remittance abroad of legally obtained profits and other amounts resulting from foreign investments, subject to applicable law and regulatory requirements. (Investment Policy)
However, martial law has introduced currency and financial restrictions that can affect the practical timing and procedure of cross-border transfers.
The January 2026 Investor’s Guide to Ukraine notes that martial-law measures include restrictions relating to foreign-currency purchases and transfers abroad, alongside other regulatory limitations. (Чесько-Українська Торгова Palата)
Therefore, foreign investors should distinguish between:
the legal right to repatriate investment income
and
the current regulatory procedure for actually transferring funds abroad.
MAYGER LLC recommends that investors examine NBU currency regulations and the applicable banking procedure before structuring dividends, loan repayments, interest payments or other cross-border transfers.
11. Protection of Investments in Large-Scale Projects
Ukraine is developing special mechanisms to attract significant investments.
Large projects may potentially qualify for state support under legislation concerning investment projects with significant investments, depending on the project’s size, sector and other statutory requirements.
For investors considering manufacturing facilities, logistics centres, energy infrastructure, processing plants or other major projects, these mechanisms can be relevant when designing the investment structure.
The objective should be to combine:
private capital + state support + insurance + international guarantees + contractual protection.
This layered model can substantially improve the risk profile of a major investment project.
12. What MAYGER LLC Recommends to Foreign Investors
Based on the experience of advising businesses entering the Ukrainian market, specialists of MAYGER LLC recommend the following sequence.
Step 1 — Define the investment objective
Determine whether the investor intends to acquire:
- a company;
- agricultural assets;
- industrial property;
- renewable-energy projects;
- logistics infrastructure;
- real estate;
- technology assets;
- an operating business;
- or a reconstruction project.
Step 2 — Conduct legal and commercial due diligence
The investor should verify the company, assets, ownership structure, financial condition, liabilities, litigation, permits and counterparties.
Step 3 — Analyse the war-risk profile
The location, physical assets, logistics and critical infrastructure exposure should be evaluated.
Step 4 — Select the corporate structure
The investment vehicle should be chosen with consideration of tax, financing, treaty protection, governance and exit strategy.
Step 5 — Analyse international protection
The investor’s country of origin and applicable bilateral investment treaties should be reviewed.
Step 6 — Arrange insurance
Potential ECA, MIGA, DFC or other political and military-risk insurance should be considered before the transaction closes.
Step 7 — Build contractual protection
Investment and acquisition documents should clearly allocate commercial, political, operational and war-related risks.
Step 8 — Establish monitoring procedures
Investment protection does not end at closing.
Investors should continuously monitor:
- changes in Ukrainian legislation;
- martial-law regulations;
- currency restrictions;
- sanctions;
- insurance requirements;
- corporate compliance;
- security conditions;
- tax changes.
13. Ukraine’s Investment Opportunity Should Not Be Viewed Only Through the Lens of Risk
War creates extraordinary risks, but it also creates extraordinary investment opportunities.
Ukraine’s reconstruction requirements, European integration, infrastructure modernisation, energy transformation, agricultural potential, industrial redevelopment and technology sectors are attracting international attention.
MIGA’s current assessment demonstrates that international investors and financial institutions continue to require political-risk insurance and guarantees to participate in Ukraine’s recovery economy. (Miga)
The investment question is therefore evolving from:
“Is Ukraine too risky?”
to:
“Can the risk be properly identified, priced, insured and legally structured?”
For sophisticated investors, this is a fundamentally different question.
14. MAYGER LLC: Investment Protection as Part of Market Entry Strategy
For foreign investors, investment protection should be incorporated into the market-entry strategy from the beginning.
MAYGER LLC provides legal and business advisory support to international investors considering business acquisitions, company establishment, investment projects, agricultural businesses, renewable energy, industrial assets, real estate and other investment opportunities in Ukraine.
The firm’s approach is based on combining legal analysis with commercial due diligence and practical transaction structuring.
Expert opinion of MAYGER LLC: “The safest approach to investing in Ukraine during martial law is not to wait for the risk to disappear. Investors should structure transactions so that identifiable risks are allocated, insured, contractually addressed and monitored. Ukraine’s investment environment requires professional preparation, but properly structured investments can still be commercially viable.”
Conclusion
Protecting an investment in Ukraine during martial law requires a multi-layered risk-management strategy.
Ukrainian law provides important protections for foreign investors, while bilateral investment treaties may provide additional international safeguards. War-risk insurance, ECA mechanisms, MIGA and other international guarantees can address risks that traditional legal remedies cannot cover. At the transaction level, due diligence, corporate structuring, contractual safeguards and appropriate dispute-resolution mechanisms remain essential.
The Ukrainian investment environment is undoubtedly complex. However, complexity does not necessarily mean that investment is impossible.
For international investors, the key is preparation.
The most important investment protection decision is often made before the investment itself — when the investor chooses the asset, structure, jurisdiction, insurance programme and contractual framework.
MAYGER LLC recommends that every foreign investor considering Ukraine conduct an individual legal, financial, tax, sanctions, insurance and security assessment before committing capital.
Ukraine remains a high-risk market, but it is increasingly becoming a market where risks can be professionally structured and mitigated.
