For the first time Ukrainian equities have been included in a London-listed fund, which aims to channel investment into the nation’s eventual post-war reconstruction and current economic resilience.
Foreign investors targeting the long-term renewal of Ukraine’s industrial base now have a more direct route to the country’s domestic corporate giants.
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The London-listed HANetf's Ukraine Reconstruction UCITS ETF (UKRN), which launched last month, has officially integrated its first three Ukrainian companies.
According to a press release by the provider, drone software firm Swarmer, telecoms enterprise Kyivstar and iron ore company Ferrexpo have all been added to UKRN.
The move matters because Ukraine's war economy has left its companies starved of foreign capital at the moment they need it most.
With reconstruction costs already estimated at more than €420 billion and climbing, Kyiv has long argued that neither they nor Western governments alone can foot the bill.
Getting Ukrainian firms in front of international institutional investors is seen as critical to bridging that gap and to ensuring the country's industrial base survives long enough to be rebuilt.
ETFs to help a war-torn economy
The UKRN UCITS ETF includes publicly traded companies set to play a key role in Ukraine's postwar recovery.
This strategic adjustment represents a significant evolution for the fund, which previously relied on international firms with peripheral exposure to the region.
"Meeting Ukraine’s needs will require the mobilisation of both public and private capital," Hector McNeil, co-founder of HANetf said in the press release.
By incorporating these national leaders, the fund offers a more authentic reflection of the economic engines that will drive Ukraine's future recovery.
The decision also follows a rigorous rebalancing of the EQM Ukraine Recovery Index, the underlying benchmark for this ETF.
As the Ukrainian private sector demonstrates continued stability, the index provider has determined that certain domestic players now meet the stringent liquidity and market capitalisation requirements necessary for a UCITS-compliant investment vehicle.
Additionally, the drone software company Swarmer has also been incorporated in another of Hanetf's products, the Drone UCITS ETF (DRON) which currently has a market capitalisation of slightly over €15 million.
Strengthening the path to economic renewal
The integration of domestic stocks is more than a technical update, as it signals the maturation of the financial infrastructure supporting Ukraine’s reconstruction.
Analysts at EQM Indexes have noted that the selection process prioritises companies deriving a substantial portion of their revenue from within Ukraine or holding significant physical assets on the ground.
The ETF model offers something that bilateral aid cannot, namely, a self-reinforcing incentive for foreign capital to follow Ukraine's fortunes over the long term.
When investors buy into this fund, you make money if Ukrainian companies grow and thrive. Investors now have a financial reason to want Ukraine to succeed, and not just a moral or political one.
That is different from aid, where donors give money with no expectation of return.
Kyiv has been arguing for years that this is the most sustainable model. Rather than relying on the goodwill of Western governments, bring in private investors who have skin in the game. If Ukraine rebuilds, they win too.
The presence of these stocks in a London-regulated ETF provides a transparent gateway for institutional and retail investors who may have previously been deterred by the complexities of direct investment in a conflict-impacted market.
While the risks associated with such investments remain prominent, the expansion of the fund to include local names suggests a growing confidence in the long-term integration of Ukrainian corporate assets into the broader European financial ecosystem.
