Turkish contractors stand firm in war-torn Ukraine with $900M infrastructure projects
Turkish company's work in Ukraine, one side of the bridge in ruins can be seen. (Photos via Onur Group)
Despite the ongoing conflict in Ukraine, Turkish construction firm Onur, ranked No. 178 on ENR’s Top 250 International Contractors list, remains committed to its projects in the war-torn country.
As many international contractors have withdrawn from Ukraine, Onur continues to play a vital role in rebuilding Ukraine’s infrastructure, with $900 million in active contracts, primarily focused on electrical and transportation infrastructure.
“We have been operating in Ukraine since 2003, and over the years, we’ve evolved from an international company to almost a local entity,” said Baturay Konak, Onur Group’s director of operations.
Navigating labor, operational challenges amid conflict
Before the conflict, the Turkish company employed up to 10,000 workers in Ukraine, but that number has since dropped to 3,500 because of labor shortages, as many Ukrainians are serving in the military.
To address this challenge, Onur has secured special permits from the Ukrainian government for key workers involved in critical infrastructure projects.
The operational environment is further complicated by the frequent air raid sirens and missile threats. Onur has implemented safety measures, including secure shelters at all construction sites.
“In the case of unexploded ordnance or other hazards, all work is halted, and we coordinate with Ukrainian emergency services to remove the threat,” added Konak.
Despite these precautions, some of Onur’s work has been damaged by missile attacks, though the firm reports no casualties among its employees.
Major contracts and investment in Ukraine’s future
Onur currently has 40 ongoing contracts with the Ukrainian government, with an additional 100 contracts worth nearly $2 billion suspended because of the conflict.
Besides public projects, Onur is involved in private ventures, including renewable energy infrastructure, residential buildings, and private hospitals.
The company is also investing in Ukraine’s post-war recovery, with a planned $500 million investment by 2030 in industrial and energy sectors.
Financial, operational hurdles in Ukraine
The company has faced financial difficulties because of Ukraine’s National Bank Resolution No. 18, which restricted the flow of funds out of the country after Russia’s invasion in February 2022.
“With over 7,000 heavy machinery units, our strength lies in our ability to maintain and refurbish our own equipment. This requires substantial costs,” says Konak.
Recent changes in legislation allowing financial support from parent companies have eased the burden.
