It might seem that in the event of a full-scale invasion, everything in the economy freezes. But if that were the case, there would be no means to finance the resistance to Russian aggression. Ukraine’s economy is struggling, but it is alive and continues to work towards victory and the country’s future. Compared to 2022, Ukraine’s economy has largely rebounded, growing throughout 2023 and 2024.

Although most Ukrainians still remain skeptical about financial instruments and investments, money must work. Therefore, investing savings and profits has once again become an important component of business and the middle class in general. I want to highlight four instruments that I consider the best direction for investment in the near future, without risky or extravagant offers.

Land is Ukraine’s most valuable natural resource, one that will retain its value always and will be extremely important for the world and Europe in the coming decades. Therefore, investments in land remain an ideal instrument for medium and long-term investing. Since January 1, 2024, the land market has also opened up to legal entities, significantly expanding investment opportunities for medium and large businesses. Moreover, land prices in Ukraine are still lower than in most European Union countries (often with higher quality), making it a good long-term investment.

Admittedly, significant profits from land investments may require waiting for 5-10 years, but land will never lose its value. For understandable reasons, land in Central and Western Ukraine is currently the most valuable. The average price per hectare of land can range from $1,500 to $3,000 per hectare, from east to west.

How do people make money from land? The two main sources of income are leasing land and margin from land resale when its value increases. And considering that all wars end, this is inevitable. Especially when Ukraine approaches joining the EU.

This instrument primarily allows investment in short-term liquid instruments that are easy to sell and convert back into cash. Secondly, OVBZ allow hedging against inflationary risks, as the bond yields are higher than deposit returns and account for inflation.

By the end of 2023, the lowest OVBZ rate was 16.5% in hryvnia. At the beginning of 2024, the annual yield on OVBZ in hryvnia reached 16.8%, while OVBZ for 2.5 years offered almost 20%. A pleasant bonus is that OVBZ income is not subject to tax. In addition to the obvious economic benefits, OVBZ also offer an opportunity to support the state and the army, as well as to earn from it.

For those who are skeptical about the hryvnia, fear inflation, or significant devaluation, I suggest considering investing in foreign currency-denominated OVBZ. The yield there is lower (in the range of 4-5%), but you are insured against the risk of hryvnia devaluation and may even increase your capital in case of a decline in the national currency exchange rate.

Investing in gold and other precious metals is perhaps the oldest and most conservative investment option available, suitable for cautious investors. In 2023, the price of gold rose by 13%, especially after the onset of another war in the Middle East. Against the backdrop of global instability, significant gold purchases by Russia (instead of the dollar and euro) and India, gold prices rose almost throughout the autumn.

If 2024-2025 proves to be a time of continued crises and increasing global instability, the noble metal will appreciate because it always serves as a hedge investment instrument when stock markets weaken. Considering that the world is facing crisis elections in the United States (which could deal a severe blow to currency and stock markets), conservative financial instruments will become even more popular. Gold can be purchased directly from the National Bank or commercial banks.

Although the circumstances may seem unfavorable, this time presents a good opportunity to scale your own business: occupy niches that have become available in Ukraine due to the war or expand your business to neighboring countries or even to Asia or Africa. Ukrainian refugees in neighboring countries can be an additional factor for your success, as compatriots could make up a significant portion of your workforce. And they could become your familiar first customers.

Furthermore, new industries are opening up for entrepreneurs in Ukraine, including government-related work – defense procurement, thanks to procedural reforms, have become more transparent and accessible to small and medium-sized businesses. If you invest now, for example, in drone production or military ammunition, you could not only become a supplier to the Ukrainian Armed Forces but also become an exporter of technologies that have been tested in real warfare.

For businesses, this symbiosis of business and volunteering (since a significant portion of these drones are still provided to the military for free) is a combination of the opportunity to help the country with a long-term opportunity for technological expansion.

In summary: Besides the listed instruments, I could also discuss the stock market, real estate market, and cryptocurrencies. However, I consider them objectively much riskier than the listed instruments. If you have the opportunity to combine all four listed instruments – agricultural land, OVBZ – both currency and hryvnia-denominated, gold, and investments in business – you will get a balanced package in terms of risk and return. This package will help you effectively navigate through difficult times and even profit from them.

Alexander Katsuba – Ukrainian entrepreneur, energy expert, owner of ALPHA GAZ company.