Just a few years ago, Mykolaiv stood as a center of Ukraine’s shipbuilding industry, shaped by its industrial giants. Then, war upended everything. The city’s infrastructure lay in ruins, businesses fled, and investment dried up, putting its economic future in jeopardy.
But Mykolaiv is not just patching up the past — it is building a new economic model, one designed to make it a key regional player. This isn’t just wishful thinking. The city is already bringing in European experts, business partners, and international funding mechanisms to craft a structured transformation strategy. With support from the Mayors for Economic Growth (M4EG) Facility, the EU-funded initiative managed by the United Nations Development Programme (UNDP) in close cooperation with the local authorities and a range of partners, including the EU4Business programme, Mykolaiv is moving beyond survival into a phase of systemic development.
A New Economic Strategy: Harnessing Water & Technology
To become competitive again, a city needs a clear vision and an understanding of its strengths. That’s why Mykolaiv is betting on the blue economy — a synergy of shipbuilding, port logistics, marine technology, and eco-friendly production.
During the "Mykolaiv — City on the Wave" international conference, organised by Mykolaiv City Council, in cooperation with the Ukrainian Association of Business Support Centres and Mykolaiv Oblast State Administration with support from the European Union (EU), the Kingdom of Denmark and UNDP in October 2024, the city’s ambitions became clear. Attended by international experts, business leaders, and potential investors, the event was not just about abstract “recovery.” It focused on concrete mechanisms to attract investment, reindustrialize the region, and create business-friendly conditions.
"We don’t just want to restore Mykolaiv’s industrial heritage. Our goal is to build an ecosystem where technology, small businesses, and global companies work together," says Mayor Oleksandr Senkevych.
From Abandoned Shipyards to Industrial Parks
The old economic model — where a handful of massive enterprises dictated the city’s fate — is no longer viable. The days of decade-long shipbuilding projects are giving way to faster, more flexible, and sustainable industries.
To adapt, Mykolaiv has launched an industrial zone revitalization program. Its goal: transform abandoned factories into industrial parks and hubs for small and medium-sized enterprises (SMEs).
"We are opening up these spaces for entrepreneurs, tech startups, and educational centers. This isn’t just about reviving industry — it’s about creating a modern business ecosystem," explains Tetiana Shulichenko, head of the city’s economic development department.
One of the most ambitious projects is the conversion of Mykolaiv Shipyard into a hub for small-scale shipbuilding, high-tech manufacturing, and marine education. Plans are in motion to establish "AquaPort", a center for training the next generation of engineers, marine technologists, and entrepreneurs.
"We are building an environment that will attract investors and businesses. It’s not just about jobs — it’s about laying the foundation for long-term growth," adds Shulichenko.
European Support as a Springboard
Such a transformation requires strong partners. That’s why the European Union plays a critical role in Mykolaiv’s reinvention. The M4EG initiative is helping the city not just secure funding, but develop a sustainable long-term strategy.
This support is already producing tangible results. Mykolaiv is working on a new economic development roadmap, leveraging its marine economy and integrating sustainable technologies into local businesses. At the same time, city leaders — together with international experts — are drafting a detailed investment attraction plan to make Mykolaiv an open and welcoming environment for new companies and capital.
Additionally, a series of competitions for entrepreneurs focused on green and tech-driven solutions is being launched. These initiatives go beyond grant funding — they aim to foster a local business network capable of both solving urban challenges and integrating into global markets.
The Next Challenge: Turning Strategy into Economic Reality
The city has a plan. Now, the real work begins: putting it into action. The speed and effectiveness of creating an investment-friendly environment will determine the pace of Mykolaiv’s economic rebirth.
Local businesses are already receiving EU-backed grants to scale up. Pilot projects combining innovation and local production are underway. Negotiations are ongoing with international companies that may soon become residents of the city’s industrial parks.
"We’re not just rebuilding Mykolaiv. We’re designing a modern economy that will thrive for decades," Senkevych concludes.
There’s still a long road ahead. But Mykolaiv is no longer trying to reconstruct the past — it’s creating the future.
