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On February 3, 2026 the Ministry of Finance of Ukraine has endorsed the Charter of the National Development Institution (NDI). This Institution commenced its operation on January 1, 2026 pursuant to the the Law of Ukraine No. 4622-IX. The Law paves the way for direct cooperation between the NDI and the EU, engaging funding from relevant programs to reinforce Ukrainian business actors.
Fundamental Role of the NDI
- to support Ukraine`s economic and social development and recovery by assisting businesses, implementing development programmes and providing financial aid to targeted groups;
- the foundation for financial autonomy, institutional resilience, and the scaling up of economic recovery programs;
- since the National Development Institution is based on European principles of corporate governance, transparency and accountability it creates the prerequisites for the systematic attraction of international financing, deeper cooperation with European Union partners, and the scaling up of financial instruments aimed at the recovery, modernisation and structural development of Ukraine's economy.
Modifications under the Charter of the NDI
- under the Charter the NDI is a state, non-profit development finance institution operating in accordance with a second-tier model (through banks and other partner financial institutions);
- the establishment of a fair legal and institutional structure for the NDI's activities, aligned with European principles;
- provision of an updated corporate governance system in line with the recommendations of the Organisation for Economic Co-operation and Development (OECD). The key governing body is the Supervisory Board, including representatives of the state and independent members with international experience;
- ensurement of transparency, financial sustainability and strategic oversight of the institution's operations;
- provision of the basis for implementing the NDI Development Strategy for 2026–2030;
- ensurement that micro, small and medium-sized businesses have access to preferential financing through partner banks. The institution has autonomous management, adapted regulation by the NBU, and the authority to administer state business support programs.
Opportunities for Businesses provided by the NDI:
- financial services (lending, guarantees, dealer activities);
- grants and other types of free and non-refundable financial assistance;
- compensation of interest rates, principal and other payments on loans, leasing, factoring, guarantees, as well as compensation of insurance premiums and contributions;
- development, support and administration of state, regional and local programs, international technical assistance projects, initiatives of international financial organizations, foreign states and the European Union;
- mediation in the distribution of funds between financial institutions within the framework of programs and projects;
- assessment of the effectiveness and analysis of the impact of programs, investment research and financial analysis;
- support for educational activities and investment activities.
Effective utilisation of the NDI's instruments will require careful legal structuring, regulatory compliance and strategic planning. As the framework continues to evolve, early engagement with the NDI ecosystem may offer a meaningful competitive advantage for market participants seeking to scale and operate within Ukraine's recovery landscape.
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