“We’re at yet another turning point,” Ukrainian President Volodymyr Zelensky told global leaders in Davos last week, “which some see as a problem for Europe, but others call a chance. Europe must establish itself as a strong global player, as an indispensable player.”
Zelensky is completely right. He is also correct — as was emphasized both by Ukraine’s government delegation and during events at Ukraine House Davos — that realizing Ukraine’s potential is critical to creating a strong Europe: economically, technologically, and geopolitically. Europe must invest to unlock this potential.
Geopolitically, Europe desperately needs to strengthen its military capabilities and revitalize its defense industry. Ukraine has the largest and most experienced military in Europe and some of the world’s most advanced drone technology. Its defense industry has demonstrated an exceptional ability to rapidly scale up high-quality production at low cost — exactly what Europe requires.
The success of the green energy transition, which is key to European energy independence, depends on access to critical raw materials. Ukraine has some of the largest deposits of these resources in the world and can act as a catalyst for a Europe powered by cheap and abundant renewable energy, fueling a vibrant economy.
Europe is also lagging in technology, while Ukraine boasts one of the strongest tech sectors in the region. The entrepreneurial attitudes and deep pool of tech talent in Ukraine are exactly what Europe needs to regain its position as a global leader in innovation.
As Europe grapples with challenges related to immigration, Ukraine’s robust agricultural sector can also help address global food insecurity. Ukraine’s recent contributions to Syria are an example of its ability to support some of the world’s poorest nations.
Perhaps the most desperately needed resource Ukraine brings to Europe is something else altogether: grit and ambition. It’s remarkable that Europe often acts and thinks as if it is weak — when it is, or should be, anything but. Europe remains the richest and most economically advanced region in the world outside the United States. It also includes some of the fastest-growing economies, such as Poland, the Czech Republic, and the Baltic states.
Geopolitically, Europe’s recent history is one of triumph, not decline. In the year I was born, the eastern border of free Europe passed through Germany. Since then, the European Union has doubled in size, successfully integrating states once under Soviet control or influence. For the first time in history, nearly all of Europe is united both geopolitically and economically — a feat unmatched even by the Romans. Instead of wondering about U.S. President Donald Trump’s next move, the world’s focus should be on Europe.
Did the messages land? In the Swiss mountains, at least, Ukraine’s pitch seemed to resonate with political leaders and investors. Nevertheless, it remains to be seen how nods of agreement will translate into practical actions.
Did the message land? It remains to be seen how nods of agreement will translate into practical actions.
I, for one, am optimistic. Trump has ended a long period of uncertainty about the U.S. position by clearly stating that Russia — not Ukraine — needs to be pressured for lasting peace to be achieved. His message that Europe must take greater responsibility for its own security, including Ukraine’s, is also welcome.
While “America First” poses both economic and geopolitical risks for Europe, it also adds urgency to Ukraine’s message about the need for European strength. This creates fertile ground for increasing foreign investment in Ukraine’s military capabilities and defense industry — a point underscored by former Ukrainian Strategic Industries Minister Oleksandr Kamyshin and Ukrainian First Deputy Prime Minister Yulia Svyrydenko during their marathons of bilateral meetings in Davos.
Many remain skeptical about civilian private sector investments in Ukraine while the war continues. But this skepticism is overblown. Right now, even as it fights for its existence, Ukraine is one of the fastest-growing economies in Europe. The end of the war, along with Ukraine’s future accession to the EU, represents additional opportunities for growth — not prerequisites for investment.
Conversations with investors already active in Ukraine confirm this. While the war presents serious challenges, pragmatic and resilient businesses continue to thrive — strengthening Ukraine’s economy now and laying the foundation for future growth. Nervous investors who believe visiting Ukraine is too dangerous are deluding themselves out of the most important European growth opportunity of the 21st century.
Ukraine House Davos directly challenged foreign investors to muster some courage by offering free Ukrzaliznytsia train ticket vouchers at their events. Not all will take the opportunity, but enough will to make a difference.
Editor’s Note: The opinions expressed in this article are those of the author, Stephan Jensen, and do not necessarily reflect those of his employer. The opinions expressed in the op-ed section are those of the authors and do not necessarily reflect the views of the Kyiv Independent.
Tom Keatinge
