Can You Buy Ukrainian Stocks? Here’s How to Invest

Investing in international markets offers diverse opportunities, and for those considering exposure to the Ukrainian economy, various avenues exist. While direct participation in the local stock market is an option, indirect approaches provide alternative ways to gain exposure. Understanding these pathways requires navigating specific financial mechanisms and an awareness of the broader economic landscape. This exploration delves into accessing Ukrainian equities and the considerations shaping such investment decisions.

Direct Investment Pathways

Directly purchasing stocks listed on Ukrainian exchanges involves specific steps for foreign investors. The primary stock exchanges operating in Ukraine include the PFTS Stock Exchange and the Ukrainian Exchange. The PFTS Stock Exchange is a prominent marketplace with electronic trading conducted on weekdays. The PFTS index serves as the main benchmark for the Ukrainian stock market. Similarly, the Ukrainian Exchange facilitates trading and is recognized for its role in the local market.

Foreign investors seeking direct access need to establish a brokerage account with a local, licensed Ukrainian broker. This process requires providing identification documents, such as a passport, along with details for an investment account held at a Ukrainian bank. A tax identification number in Ukraine may also be required for non-resident investors. Once the brokerage account is established and funded, transactions for purchasing securities of Ukrainian issuers are conducted in the national currency, the Ukrainian Hryvnia (UAH).

The National Securities and Stock Market Commission oversees the securities market in Ukraine, issuing licenses and establishing regulations for participants. While foreign investors can generally enter the market, specific approvals are necessary for acquiring substantial stakes, such as 25% or more, in any company. Additionally, foreign investors are not permitted to hold founding shares in broadcasting organizations or invest in companies manufacturing weapons or alcoholic spirits.

Indirect Investment Options

For investors seeking exposure to Ukraine without directly engaging with its local stock exchanges, several indirect investment options are available through international markets. Exchange Traded Funds (ETFs) represent one such avenue, often focusing on broader emerging markets or specific regions that may include Ukrainian companies. These ETFs provide diversification across multiple companies and sectors. While there are no U.S.-listed ETFs solely dedicated to Ukraine, some emerging market or European-focused ETFs may have minimal exposure to Ukrainian equities as part of their broader portfolio.

American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) offer another pathway, allowing shares of foreign companies to be traded on U.S. or other international exchanges. A limited number of Ukrainian companies historically had ADRs, but many of these have been delisted or are not actively traded on U.S. markets. Some Ukrainian companies do have GDRs listed on European exchanges, such as the London Stock Exchange or the Warsaw Stock Exchange.

Investing in publicly traded companies listed on major international exchanges that have substantial business interests or operations within Ukraine can also provide indirect exposure. Companies like Kernel Holding S.A., a major sunflower oil producer, and Astarta Holding N.V., an agricultural and industrial holding company, are listed on the Warsaw Stock Exchange. EPAM Systems Inc., a digital engineering and software company, has a significant workforce in Ukraine and is listed on the New York Stock Exchange. Other multinational corporations, such as Bunge Ltd., Scatec ASA, and Raiffeisen Bank International AG, maintain subsidiaries or significant operations in Ukraine, offering exposure through their internationally traded shares.

Understanding the Investment Environment

The investment landscape in Ukraine is shaped by economic characteristics and ongoing developments. The economy experienced a significant contraction in 2022, with GDP declining by over 30%, but has shown signs of recovery since 2023, with forecasts for modest growth in 2025. Inflation remains a consideration, with annual consumer inflation at 14.1% in July 2025. The Ukrainian Hryvnia (UAH) has demonstrated some stability, with forecasts suggesting it will remain relatively stable around 43.5 per U.S. dollar through 2025, supported by the National Bank’s efforts.

The geopolitical situation directly influences market activity and investor sentiment. While it has caused disruptions, businesses have shown adaptability by adjusting logistics and relocating operations to safer regions. This resilience has contributed to continued economic activity and investment, with annual investment growth rates ranging from 10% to 50%.

Market liquidity and trading volumes in Ukraine’s stock market have historically been limited. While the Ukrainian Exchange reported an increase in trading volume in May 2024, a significant portion was attributed to government bonds, with shares accounting for a much smaller percentage. This indicates that the domestic stock market for equities is not particularly deep or liquid.

The regulatory and legal framework for foreign investment permits market entry. However, foreign investors acquiring a substantial stake in a company may require approval from the Anti-Monopoly Committee. Repatriation of funds and capital controls are managed through investment accounts, which are designed for foreign investment transactions. The Ukrainian government has also introduced incentives for foreign investors, such as potential tax exemptions for certain projects.

Specific sectors have demonstrated resilience and continue to present activity for investors. Agriculture requires substantial funding for recovery and modernization. The information technology (IT) sector has also shown resilience, employing a significant number of people and contributing substantially to the economy. Other active areas include logistics, agri-processing, and the manufacturing of construction materials, given ongoing needs for infrastructure development. Looking ahead, sectors such as metals and mining, and renewable energy, are identified as areas with long-term potential.