Kyiv, 14 October 2025 – The United Nations Development Programme (UNDP) in Ukraine and the Centre for Innovations Development have identified four key regional economic clusters with the highest potential to drive Ukraine’s post-war recovery, focusing on rapid expansion of employment, exports, and investment. 

The clusters, which were uncovered in a study carried out by UNDP in cooperation with the centre, include agricultural production and processing in Vinnytsia, logistics and trade in Odesa, pharmaceuticals and building materials in Kyiv, and IT and high-tech industries in Kharkiv.

The Ukrainian economy is rebuilding amid the impacts of the war, including production relocations and the transformation of supply chains. Economic clusters – associations of businesses – are a vital tool to quickly concentrate competencies, create joint service capacities, and strengthen the resilience of micro, small, and medium-sized enterprises (MSMEs).

The study highlighted these key drivers of growth:

• Agricultural production and processing in Vinnytsia Oblast: The region boasts more than 2,700 agricultural enterprises that provide nearly 8% of Ukraine's agricultural output.
• Logistics and trade in Odesa Oblast: More than 40,000 employees work in the transport sectors, which account for 51.4% of the sales volume of trade enterprises.
• Pharmaceuticals and building materials in Kyiv Oblast: The area concentrates 12% of all pharmaceutical enterprises in Ukraine.
• IT and high-tech industries in Kharkiv Oblast: 95% of companies here are small businesses.

These areas have the potential to scale production with high added value, develop exports and attract investment in the regional economy.

The study was carried out as part of the project “Strengthening the Financial Capacity of MSMEs and the Economic Recovery of Regions Through the Development of Clusters” within the framework of the “Transformational Recovery for Human Security in Ukraine” project, which is funded by the Government of Japan and implemented by United Nations Development Programme (UNDP) in Ukraine. 

Key results in the oblasts:

Vinnytsia Oblast: The region has a strong foundation for an agricultural production and agro-processing cluster, supported by infrastructure such as elevators, fruit and vegetable storage facilities, and transshipment points, as well as innovation capabilities like IT integration in agricultural technologies. This combination creates synergies for deeper processing, higher productivity, and better integration into export channels.

Vinnytsia Oblast accounts for nearly 8% of Ukraine’s total agricultural output. However, there is a need to improve communication about the benefits of clustering for MSMEs and to enhance the quality of training, which should be part of targeted support programmes. The region currently has more than 2,700 agricultural enterprises and farms, as well as over 250,000 smallholder households.

FULL RESULTS OF THE ANALYSIS (in Ukrainian)

Odesa Oblast: The location on the Black Sea coast and the presence of five international transport corridors creates a natural logistical advantage. More than 40,000 employees work in this sector. During the full-scale war, the Maritime Corridor was organized here, transporting around 100 million tons of cargo in just a year-and-a-half.

This demonstrates the region’s strong capacity to expand export logistics and related services. The local economy shows strong positions in trade (over 50% of total enterprise sales), transport, and industry. Medium-sized businesses form the backbone of the regional economy – they provide more than half of total enterprise employment and nearly half of all sales.

Microenterprises employ around 16.5% of the workforce, which is a relatively high figure. This means that the core of future clusters and their sustainability largely depend on MSMEs that require certification, engineering, customs, logistics, and joint export marketing support.

FULL RESULTS OF THE ANALYSIS (in Ukrainian)

Kyiv Oblast: Provides a multi-sectoral platform for clustering, combining the agri-food complex, pharmaceuticals, building materials, and the strong logistics network of the capital.

Industry (34.4% of total enterprise sales) and trade (47.3%), as well as agriculture (8.1%), hold significant weight in the region’s economy. Nearly 12% of Ukraine’s pharmaceutical enterprises are concentrated here, creating synergies with smart specialization in the food industry and the region’s raw material base for construction materials. This fosters the emergence of interconnected “food-health-materials” clusters. The concentration of warehouses and distribution centres around the capital also reduces logistics costs and speeds up market entry for producers.

FULL RESULTS OF THE ANALYSIS (in Ukrainian)

Kharkiv Oblast: Despite its proximity to the front line, the region has retained a critical mass of expertise and enterprises in high-tech sectors. Small businesses account for 95% of all enterprises in the Kharkiv region, providing a significant share of employment and local budget revenues.

The IT ecosystem demonstrated growth between 2023 and 2024, relying on the second-largest educational and scientific base in Ukraine, supported by the Kharkiv IT Cluster. However, security risks and workforce outflows remain key challenges, making war-risk insurance tools, grant mechanisms for staff retention, and internationalization programmes particularly relevant.

FULL RESULTS OF THE ANALYSIS (in Ukrainian)

Methodologically, the assessment of cluster potential was based on three core quantitative indicators: the total number of enterprises, employment, and sales volume, with additional consideration of export potential and validation through interviews with businesses and local authorities. This approach made it possible to assess not only the scale of sectors but also their ability to form value chains and expand beyond domestic markets.

Media Inquiries:

Yuliia Samus, UNDP Ukraine Head of Communications; e-mail: yuliia.samus@undp.org