– Every morning begins with a new challenge

At a factory outside Lviv, shop fittings, furniture and advertising solutions are manufactured for customers across Europe. When Russian attacks made the electricity supply unpredictable, both production and exports were put at risk. With support from Norway, MARKQUEN Company has invested in its own energy supply, and regained one of the things that matters most in business: predictability.

The sound of metal being cut and shaped fills the production hall. Machines run steadily at the factory outside Lviv. Employees weld shop shelving, assemble furniture and put the finishing touches on advertising signs that will soon be shipped to customers across Europe.

Rows of brand-new solar panels cover the roof. In a country where power cuts can occur several times a day, the solar panels provide stability.

The company’s owner, Bogdan Zelenyi, says the investment is about far more than avoiding power cuts. Before the solar panels were installed, everyday life was marked by uncertainty.

– Electricity can disappear at any moment. You never know when it will happen or how long it will last. When it does, the entire production process has to be adjusted on the spot, says Zelenyi, describing what it is like to run a business in a country at war.

– Some days it is about electricity; on others, it is about logistics or employees. You learn to solve today’s problem before you start thinking about tomorrow, he says.

With its own power supply, the local export factory now has a stronger foundation for growth.

– Our customers expect us to deliver when promised. With a more stable electricity supply, we can plan more effectively, offer more predictable prices and compete for a greater number of contracts, says Zelenyi.

For a company exporting to Europe, this is crucial. Zelenyi now has room to invest further and hire more employees.

Despite the war, the business owner describes the region’s private sector as being characterised more by cooperation than by competition.

– There are not many companies doing the same kind of work here in western Ukraine. If I am in need of something, need a machine part or encounter a problem, I simply call another business owner. We help each other. That is how we get through this, says Zelenyi.

Zelenyi’s company has received support through the ReACT4UA programme, to which Norway was an important donor. The programme, led by Germany’s development agency GIZ, gave businesses access to a combination of grants and loans through a local bank. This made it possible to invest in solar panels and energy storage, an investment that would otherwise have been difficult to undertake during the war.

Small businesses are the backbone of Ukraine’s economy

Small and medium-sized enterprises account for around 70 per cent of employment in Ukraine.

– They create jobs, sustain local value chains, pay taxes and help keep the Ukrainian economy functioning - even during wartime. Access to electricity is a prerequisite for economic growth. That is why this support is important, says Norad Director General Gunn Jorid Roset.

Together with GIZ, Norway supports micro and small enterprises in Ukraine by helping them invest in local energy production, energy storage and energy-efficient solutions. As a result, they are less vulnerable to attacks on the power grid and better equipped to maintain their operations.

In addition, Norway supports small and medium-sized enterprises through the World Bank’s RISE programme. Among other things, the programme helps improve the framework conditions for the private sector, access to affordable finance, advisory services and export markets, enabling businesses to keep going during the war while also preparing for reconstruction and EU integration.

An investment in Ukraine’s economic future

– Ukraine must own its own future, and a strong private sector is an important part of that. That is why we are helping ensure that Ukrainian businesses have the opportunity to grow and create jobs, even during war, says Norad Director General Gunn Jorid Roset.

For Ukraine, a well-functioning private sector is also linked to the possibility of future EU membership.

Norway steps up its support

The experience gained through ReACT4UA shows that targeted investments in energy and access to finance can deliver rapid and tangible results.

During the Ukraine Recovery Conference in Gdańsk in June 2026, Norway announced that it would provide an additional NOK 50 million for a new pillar of GIZ’s STEP IN 2 EU programme, which builds on ReACT4UA. The funding will support energy efficiency measures and the modernisation of production among Ukrainian small and medium-sized enterprises. Norway is already supporting the programme with NOK 150 million over the period 2025-2028.

STEP IN 2 EU brings together Norway, Germany, the EU, Lithuania and Estonia around a shared objective: strengthening the competitiveness of Ukrainian businesses and supporting Ukraine’s economic integration into the EU single market.

Through cooperation with local banks, public authorities and the private sector, more companies will gain access to financing, invest in modernisation and create new jobs.

Results of Norwegian support to small and medium-sized enterprises

Norway contributed NOK 25 million to energy support through the ReACT4UA project.

The support has delivered tangible results:

• 150 micro and small enterprises have received support for investments in energy production, energy storage and energy-efficient solutions.
• The companies have installed 6.82 MW of new energy generation and storage capacity - more than three times the original target.
• The project has helped safeguard nearly 1,000 jobs, including jobs for veterans and internally displaced people.
• The companies also achieved a 49 per cent reduction in energy consumption through the installation of alternative energy sources, strengthening both their energy efficiency and operational reliability.