Ukraine’s Tech Sector Sets Sights on Growth at Kharkiv Forum Despite Russian Attacks

War or not, foreign investment and government tech initiatives are soldiering on in Ukraine. The Global Tech Kharkiv forum brought together participants willing to commit to Ukraine’s economy in August. Major announcements included large-scale mergers and acquisitions, the broadening of the Diia.City tax initiative, and a strategic shift in defense tech financing toward local component production.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. France’s Credit Agricole expands local presence French financial group Credit Agricole is finalizing its acquisition of Bank Lviv, signaling continued European confidence in Ukraine’s wartime banking sector. “Our shareholders, the French Credit Agricole group, are invested in our growth here,” said Ihor Kuropii, director of corporate business and financial markets at Credit Agricole. “We are in the final stages of acquiring Ukraine’s Bank Lviv. In terms of investing in the Ukrainian economy, our words match our actions,” he added. The Lviv-based bank had been a small lender in western Ukraine until Russia’s 2022 full-scale invasion started. Since then, it has become a partner for international financial institutions (IFIs), and its location far from hostilities has made it an attractive vehicle for lower-risk transactions. Bank Lviv was registered in 1990, according to data from business analytics platform YouControl. Its current major shareholders include Switzerland’s Responsibility Participations AG (41.15%), New Progress Holding (nearly 21%), and the Nordic Environment Finance Corporation (NEFCO) (over 10%). The western Ukraine-based lender focuses on small and medium enterprises (SMEs) and development financing, serving over 37,000 retail customers and 8,400 SME clients. Other Topics of Interest Why Russia Wants Western Embassies Out of Kyiv – and Why They’re Staying Moscow’s repeated warnings have failed to drive Western diplomats from Kyiv, turning embassy presence into a test of political resolve. Crédit Agricole Ukraine has been operating in the country for over 30 years. Headquartered in Kyiv, the universal bank serves 380,000 customers through a network of 137 branches and is owned by the French Crédit Agricole Group. Brave1 bets on component localization Brave1, Ukraine’s state defense cluster, is pushing for components to be produced locally to strengthen resilience. “As domestic drone production scales rapidly, the Brave1 defense cluster is redirecting its Hr.7 billion [$170 million] budget toward localizing component production,” said Oleksandr Bornyakov, chairman of the Brave1 supervisory board, who added that many of Ukraine’s drone components and explosives were imported. “Anyone who masters the manufacturing of these components today will build a resilient business for decades,” he added. From left to right: Ihor Kuropii, director of corporate business at Credit Agricole; Oleksandr Bornyakov, chairman of the Brave1 supervisory board; and Ihor Fedirko, executive director of the Ukrainian Armorers' Council, at the Global Tech Kharkiv forum in August 2026. (Photo by Kharkiv IT Cluster) Ukraine’s defense tech sector has expanded from fulfilling a state order of just seven drones in 2022 to supporting over 500 active companies today. The influx of venture capital into the sector is growing exponentially: After attracting just $1.1 million in 2023, investments have already surpassed $150 million in 2025, with market projections hitting half a billion dollars by 2027, said Ihor Fedirko, executive director of the Ukrainian Armorers’ Council. Currently, foreign investment in Ukrainian defense tech is primarily driven by German and Danish funds, while other European venture capital remains constrained by bureaucratic hurdles. Diia.City to include BioTech, MedTech Ukraine’s Ministry of Digital Transformation is preparing to expand Diia.City, a legal and tax initiative for the tech sector in Ukraine. A new technological sandbox for BioTech and MedTech companies will be launched shortly to attract foreign enterprises and capitalize on Ukraine’s growing expertise in wartime medical tech, according to the ministry. “Unfortunately, many still perceive Ukraine merely as a testing ground, but this is just the beginning,” said Nataliya Denikeieva, deputy minister of digital transformation. “In the near future, we will launch our first tech sandbox for BioTech and MedTech, which will attract additional foreign companies.” The ministry also announced the launch of “Diia.City Invest,” a specialized tool designed to simplify and secure venture capital investments into resident companies. Diia.City Invest is a dedicated fast-track program that aims to attract capital into the Ukrainian tech sector. The initiative aims to create an environment that encourages investment in innovative companies, rather than relying on conservative instruments like bank deposits or real estate purchases. Nataliya Denikeieva, deputy minister of Ukraine’s digital transformation, at the Global Tech Kharkiv forum in August 2026. (Photo by Kharkiv IT Cluster) UK Aid, Mercy Corps launch “Digital Booster” program for frontline SMEs To support traditional businesses operating near the front lines, the Kharkiv IT Cluster, backed by the UK government through UK Aid under the BLOOM program, has launched the “Digital Booster” initiative. The program will provide direct financial vouchers to 150 local SMEs to upgrade their operational software, specifically focusing on eradicating legacy Russian systems like 1C. Vicki Aken, Mercy Corps’ country director for Ukraine, at the Global Tech Kharkiv forum in August 2026. (Photo by Kharkiv IT Cluster) The use of Russian software like 1C and its alternatives is considered a direct threat to Ukraine’s national security and cybersecurity. The primary danger lies in the potential leak of strategic data to Russian intelligence services, as these accounting programs hold comprehensive information on a company’s finances, logistics and personnel. Ukraine’s National Security and Defense Council (RNBO) also officially banned this software, and the lack of legitimate updates leaves it highly vulnerable to destructive cyberattacks. The program functions as a networking platform that directly connects frontline businesses with Ukrainian IT integrators to sustain capital circulation within the national economy. “Sustainable economic recovery in Ukraine depends on stronger domestic markets, where Ukrainian companies buy from one another, implement innovations, and create jobs,” said Vicki Aken, Mercy Corps’ country director for Ukraine.