Finnfund in Ukraine: investment criteria, the €25 million allocation and how to approach it

Finnfund (Finnish Fund for Industrial Cooperation Ltd) is Finland’s development financier and impact investor. According to its 2025 annual report, it invests “200–250 million euros in 20–30 projects” each year. In Ukraine it finances private companies, with a particular focus on projects where Finnish companies are directly involved. Finnfund invests on market terms and has no calls or deadlines: projects are considered on a rolling basis.

1. The €25 million Ukraine allocation

Under Finland’s national reconstruction plan, Finnfund received “a special allocation of 25 million euros to be used for investments in Ukraine targeting projects where Finnish companies are directly involved” (Finnfund blog, 3 September 2024). Finnfund’s Annual Report 2025 sets the target as “full use of the Ukraine-related loss compensation commitment / value of the investment decisions EUR 25 million by the end 2025”. The state loss-compensation commitment for Ukraine itself totals €20 million and covers 80% of the risk. By the end of 2025, Ukraine special-risk financing stood at €7 million, of which the State bears €5.6 million.

What the Annual Report 2025 (published April 2026) says happened:

• Investment decisions for Ukraine in 2025: €7 million, or 3% of Finnfund’s total investment decisions that year.
• Total investment decisions made in Ukraine: €17.9 million. This is Central Plains Group (€7 million) plus Horizon Capital Growth Fund IV (USD 15 million, converted to €12.8 million at the closing rate, of which €10.9 million is in Ukraine).
• The CEO’s review says Finnfund “disbursed the first investment aligned with this strategic objective” and that work continues in 2026, “particularly in sectors such as agriculture and energy”.
• The report also notes that the war’s intensity “increased considerably during 2025 and has dimmed prospects for a ceasefire and reconstruction rush in 2026”.

Note that investment decisions are not the same as disbursements: the €17.9 million is the value of decisions, not money paid out.

Allocation status unconfirmed: the end-2025 target (full use of the commitment, i.e. investment decisions worth €25 million) has passed. By then, investment decisions in Ukraine totalled €17.9 million, and Ukraine special-risk financing under the €20 million state loss-compensation commitment stood at €7 million. As of 14 November 2026 we found no official statement on whether the target has been extended into 2026–2027 or how much capacity remains. Ask Finnfund directly before counting on any specific amount.

2. Ukraine portfolio examples

• Central Plains Group (Ukrainian agribusiness): a €7 million investment decision, according to the Annual Report 2025. We did not find a separate Finnfund project page for this investment. In a LinkedIn post (6 July 2026), Finnfund said it had introduced this company to 10 Finnish suppliers.
• Horizon Capital Growth Fund IV: a private-equity fund managed by Horizon Capital, with a USD 300 million target, investing in SME and mid-cap technology and export-oriented companies in Ukraine and Moldova. Finnfund’s commitment is USD 15 million (status: active). Portfolio companies listed on Finnfund’s page include Preply, Creatio, Room 8 Group, Viseven and ITGlobal Group. The investment was signed in April 2023.

For new Ukraine entries, check Finnfund’s current investments list.

3. Investment criteria

Finnfund’s general criteria (“Looking for an investor?”):

• It invests only in developing countries as defined by the OECD/DAC. Ukraine is on the DAC list.
• Only privately owned businesses, on market terms.
• Equity, mezzanine or debt, in euros or US dollars.
• Ticket size €5 million – €25 million.
• In new companies, Finnfund’s share is always smaller than the sponsor’s. In expansions it can be larger.
• The project must be profitable, environmentally and socially responsible, and have measurable development impact.
• Focus sectors: renewable energy, sustainable forestry, sustainable agriculture, financial institutions, and digital infrastructure and solutions.

Ukraine-specific points (Finnfund blog, September 2024):

• Finnfund is a late-stage investor. It considers only projects “in late development or operational phase, and of sufficient scale”.
• Key sectors are digitalisation and energy, but it is open to all sectors, including education, infrastructure and agriculture.
• Business Finland (June 2026) summarises that Finnfund “can invest in private companies that are already operational or being established in Ukraine”, especially where Finnish companies are involved as owners or suppliers.

4. How Finnish companies can be involved

According to Finnfund’s page on investments in Finnish companies, Finnfund can finance:

1. A Finnish-owned subsidiary or joint venture in Ukraine. The blog gives co-investing in a new company set up by a Finnish company as an example.
2. The business customer of a Finnish supplier in Ukraine, for example a loan to a Ukrainian private company buying substantial Finnish technology or expertise.
3. In addition, Finnfund connects Finnish suppliers with its existing investees (over 200 portfolio companies). It “does not require its investee companies to purchase Finnish technology or services”.

Minimum size for Finnish-company projects: “the investment sought from Finnfund should be at least 5 million euros, and the total project financing or financing round should typically be at least 10 million euros.”

5. Process and timeline

1. Make contact. Approach the relevant sector investment team or, for projects involving Finnish companies, Finnfund’s EU & Finnish Partnerships team. The official page names Patrik Bredbacka (Head of EU & Finnish Partnerships) and Mikaela Joensuu (Analyst).
2. Submit a project plan following Finnfund’s published guidelines, together with information on the other financiers.
3. Assessment. Finnfund carries out an environmental and social assessment and an ex-ante development impact assessment (additionality, market relevance, and impacts on poor people and women).
4. Decision. Finnfund’s Board, which usually meets monthly, makes the decision. Finnfund says the investment decision is “usually taken within 3 to 4 months” of first contact.

In its 6 July 2026 LinkedIn post, Finnfund said it has learned lessons on due diligence and relationship management in wartime Ukraine, and uses local partners for environmental and social due diligence. Our advice: expect thorough checks.

6. When Finnfund is not the right partner

Finnfund’s own page says it is not suitable if:

• the investment is for a public-sector entity. Look at FUIF or Nefco instead.
• the financing is for a company registered in Finland.
• the amount sought is below €5 million, or the total financing is under €10 million.

Other routes:

• Export financing is handled by Finnvera. See our Finnvera and SISU guide.
• Earlier-stage projects (feasibility studies, pilots, investment preparation): Finnfund itself points Finnish companies to Finnpartnership.

7. Other Nordic development financiers

Finnfund’s Ukraine allocation is aimed at projects with Finnish involvement. No rule we found excludes other sponsors, but Swedish, Norwegian and Danish companies may also want to look at their own countries’ instruments. For example, Norfund runs a Ukraine Investment Fund (investments of USD 5–50 million each, ideally USD 15–25 million) for companies deploying funds in Ukraine; no application deadline is stated.

Who is this relevant for?

• Finnish companies setting up or expanding a subsidiary or joint venture in Ukraine, with a financing need of at least €5 million.
• Ukrainian private companies buying substantial Finnish technology or services, or with Finnish owners.
• Finnish suppliers looking for customers among Finnfund’s investees.