By Iurie Moraru, member Steering Committee Lighthouse Legal Media
On 6 March 2026, the Swiss Federal Council adopted the message to Parliament concerning a bilateral agreement with Ukraine aimed at supporting the country’s reconstruction. The agreement, originally signed on 10 July 2025, establishes the legal framework for stronger participation by Swiss private-sector companies in rebuilding Ukraine’s infrastructure and economy.
The reconstruction effort is expected to require significant private-sector involvement, particularly in key areas such as energy and infrastructure. Under the agreement, Switzerland will provide non-repayable financial assistance. Ukraine will identify the goods and services required, which Switzerland will then procure from Swiss companies in accordance with Swiss public procurement rules. Foreign bidders will be excluded from these tenders, effectively directing the aid toward Swiss providers.
From a policy perspective, the agreement reflects a hybrid approach combining development cooperation with economic policy. By linking financial assistance to procurement from Swiss companies, the framework aims to mobilise Swiss expertise, technology, and private investment while contributing to Ukraine’s post-war recovery.
The consultation process revealed broad support from cantons and business associations, which highlighted the potential economic benefits for both countries and welcomed the partnership-based approach. However, development organisations raised concerns that the mechanism could reintroduce forms of “tied aid” in international cooperation, a practice often criticised for limiting competition and efficiency in development spending.
For businesses and legal practitioners, the agreement raises several practical questions:
• How Swiss procurement rules will be applied in reconstruction projects abroad
• How projects will be structured between Swiss companies and Ukrainian authorities
• What compliance and transparency mechanisms will govern the funding
The agreement must now pass through the Swiss Federal Assembly and will be subject to an optional referendum. Source: https://www.news.admin.ch/de/newnsb/JfT_6pCG-mQDSgctceh79
If adopted, it could become a model for how states combine reconstruction aid with domestic industrial policy and private-sector participation.
At Lighthouse Legal, we will continue to follow developments at the intersection of reconstruction policy, international economic law, and procurement frameworks shaping Ukraine’s recovery.
