The construction sector in Ukraine is undergoing a massive transformation, says the construction company Aleksandria

Text Patrik Saarto  Photos Aleksandria

The construction sector in Ukraine is changing. The stages and impact of the three-year-long defensive war are directly visible on the construction sites of the Kyiv-based company Aleksandria.

Aleksandria is a full-service general contractor and a group of several companies with extensive experience in construction in Ukraine. The group’s more specialized subsidiaries complement the operations of the leading company at various stages of construction or serve their own clients in other projects.

– A general contractor means something slightly different in Ukraine than in the rest of Europe. Here, it is a contractor with its own resources, its own machines, its own tools, and we carry out all stages of construction with our own workforce and equipment, explains owner and commercial director Oleksii Molodko to EastCham about the company’s operations.

Aleksandria builds almost anything when it comes to buildings or infrastructure. That’s why the company immediately sees changes in the sector. Before the Russian war of aggression began in February 2022, Aleksandria’s focus was on housing – apartment buildings and municipal engineering. After the war began, the demand for housing plummeted, and projects have shifted towards industrial construction projects and international aid projects.

In industrial projects, it has partly been about companies relocating from the war zone to Western Ukraine, and partly about repairing commercial premises damaged at the beginning of the war, for example, in the Kyiv area. Now companies are already investing in new growth.

– The wave of companies moving away from the battle zones has already ended. We see a small positive development in that companies are building new production capacity, Molodko says.

“We see a small positive development in that companies are building new production capacity.”

The way construction is done has also changed. Previously, the goal was to build as many residential square meters as possible. Now, areas are being planned as complete entities with their own schools, shops, sports facilities, and leisure amenities. Outdated techniques and standards are becoming a thing of the past, and urban development is increasingly utilizing international experience.

Residential construction is now focused on the western parts of the country and the Kyiv area, but the housing market is still waiting for better times. Many homes have been lost, and people have relocated within the country. Purchasing power has weakened, and new homes are not being bought much yet. People now primarily need affordable housing.

The war has also brought the need to build new types of facilities, such as bomb shelters and military-use spaces. There are many demanding projects, such as bridges, that need to be rebuilt.

– Currently, the change is progressing rapidly, Molodko describes the development of the construction sector.

Bomb shelter for a logistics company. The 220 square meter shelter provides space for 120 people.

Comprehensive approach

Ukrainian companies have adapted to the conditions of war and have continued their operations persistently. Aleksandria did the same, already being on-site in March 2022, constructing a large logistics center for Nova Pošta in Boryspil as usual.

Competition in Ukraine is tough, but according to Molodko, Aleksandria’s competitive advantage is its comprehensive approach. The group of companies has worked for years on challenging projects, building everything from apartments to office spaces and kindergartens to logistics centers. The company has good relationships with local authorities and permit agencies. Financing and insurance will be arranged.

– We take responsibility for the project from design to handover. If a client wants to carry out a project with us and our profile suits them, there is no doubt that we will execute it, promises Molodko.

“We take responsibility for the project from design to handover.”

Even in difficult conditions, Aleksandria selects its projects with careful calculation to ensure the project is on a solid foundation. As a Kyiv-based company, it primarily starts its projects in the capital’s surrounding areas, such as the Kyiv, Zhytomyr, and Chernihiv regions. But there are no restrictions on the geography of construction projects – Aleksandria works throughout Ukraine.

– The costs of organizing construction have increased significantly. The start of construction, moving people, equipment, mobile accommodation, organizing temporary shelter for personnel, etc. costs almost twice as much as before the full-scale invasion of Ukraine in 2022. It is not worth taking risks with a small margin, says Molodko.

Molodko recommends choosing partners carefully, as the risks with new construction companies in Ukraine are high. Sometimes, when a client chooses the lowest price, the project remains unfinished, and the construction company may even go bankrupt.

Open for cooperation

From Finland Aleksandria is looking for partners who want to undertake construction projects in Ukraine. The company is not looking for material suppliers but is interested in broader construction solutions and technologies that could be utilized in construction projects. The projects to be implemented can also be challenging, such as building in the energy sector, waste recycling, or environmental solutions – Aleksandria’s expertise is available for cooperation.

According to Molodko, Ukraine now combines enormous potential, significant raw material resources, and still considerable expertise resources. The availability of construction materials has remained good all the time. The market, demand, and supply must, of course, be carefully examined first, but at the moment, there are still many market niches available for new solutions in Ukraine.

– My advice is to find a reliable partner in Ukraine and create communication channels and a foundation for cooperation so that when the war ends or a ceasefire occurs, or decisions are made on new projects, they are already ready. It is not worth postponing what can be done today. We must look ahead, even if the right time is not yet this year, says Molodko.

“My advice is to find a reliable partner in Ukraine.”

Finnish experience

The history of Aleksandria began in 2004 with a small engineering and design office and a group of young, motivated entrepreneurs. At that time, it was typical in Ukraine’s construction sector for construction to be handled by a group of separate companies, and thus the idea was born to create a company that could carry out an entire construction project itself, Molodko says.

Today, under Aleksandria’s umbrella are companies such as NP Elektro, which performs electrical installations, and SPS-A, which specializes in fire protection and telecommunications. The companies have a total of over 200 employees and more than 40 completed projects.

According to Molodko, Finland is an excellent example of how infrastructure is built with a focus on safety after a war. Ukraine can now utilize Finland’s experiences, for example, in building shelters.

What is built today lays the foundation for the future environment in post-war Ukraine.

– Many things inspire and motivate me to continue building in Ukraine. One of them is my desire to participate in reconstruction and my boundless gratitude to our soldiers. But above all, I believe that Ukraine and its people are just at the beginning of their rise, says Molodko.

EastCham in Ukraine

EastCham is preparing for the reconstruction of Ukraine together with Finnish companies. If you are interested in cooperation with Finnish companies in Ukraine, please contact EastCham’s Kyiv office manager, Senior Business Advisor Olena Kutsai.

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