Ukraine’s Ministry of Digital Transformation plans to launch a new mechanism to channel domestic capital into the technology sector — Diia City Invest. The draft law, presented on February 18, aims to simplify the creation of venture funds investing in Diia City residents and primarily targets large traditional businesses that have accumulated substantial hryvnia liquidity due to currency restrictions.

Following the National Bank’s introduction of currency restrictions in 2022, including a ban on dividend payments abroad, many large companies continued generating profits but were unable to repatriate funds. As a result, significant cash balances accumulated on corporate accounts.

The Ministry’s objective is to redirect accumulated liquidity away from passive assets (such as real estate and parking spaces) toward technology companies and innovation.

Forbes Ukraine analyzed financial statements of major companies since 2021 using YouControl data to identify businesses with the largest growth in the “cash and cash equivalents” category.

The leader in accumulated cash is Kyivstar, with UAH 20.1 billion — more than double the next companies in the ranking.

1. Kyivstar — UAH 20.1 billion
2. Visa — UAH 9.9 billion
3. MetLife — UAH 9.6 billion
4. Philip Morris Ukraine
5. JTI Ukraine
6. British American Tobacco Ukraine
7. Coca-Cola Beverages Ukraine
8. Carlsberg Ukraine
9. Lifecell
10. Slots U.A — UAH 2.1 billion (the only company on the list with Ukrainian ownership)
11. Nestlé Ukraine

Most companies on the list have foreign shareholders and operate in telecommunications, financial services, FMCG, tobacco, and consumer sectors.Diia City Invest: What Is ProposedThe draft law provides for:

• a minimum fund size of 1,250 minimum wages (approximately UAH 10 million);
• a maximum size of up to €50 million;
• investments exclusively in Diia City residents (more than 3,400 companies).

Residents of the regime undergo audits and must meet several criteria: at least 90% of revenue from the digital economy, an average salary of at least €1,200, a minimum of nine specialists on staff, no tax arrears, and no ties to Russia.

The Ministry’s initiative represents an attempt to build a domestic venture capital market based on the significant hryvnia liquidity accumulated by large businesses due to wartime restrictions.

If adopted and implemented, the mechanism could result in a new segment of local funds of up to €50 million each, serving as an alternative to external venture capital.