Recently, the conference “On the Road to the URC (Ukraine Recovery Conference): Security and the Defense Dimension” was held in the Polish city of Rzeszów, bringing together officials and industry representatives to discuss the economic dimension of cooperation between Kyiv and Warsaw, with a particular focus on the defense sector.
In an interview with Ukrinform, Bartłomiej Babuśka, Chairman of the Board of Poland’s Industrial Development Agency (ARP) — a government agency overseeing more than 100 Polish state-owned enterprises and companies across a range of industries — outlined his vision for Ukrainian-Polish economic cooperation in the context of Ukraine’s reconstruction and the upcoming Ukraine Recovery Conference (URC) in Gdańsk.
As the interview was being finalized, it emerged that Mr. Babuśka had stepped down as head of the Industrial Development Agency following his appointment as Poland’s representative to the Business Advisory Council operating within the Ukraine Donor Platform. In this new role, he is expected to play an even more active part, on behalf of the Polish government, in shaping Ukraine’s investment climate and supporting the country’s postwar reconstruction.
POLAND HAS A RESPONSIBILITY TO COOPERATE WITH AND SUPPORT UKRAINE
Ukrinform: Mr. Chairman, during the recent security conference in Rzeszów, Polish Prime Minister Donald Tusk announced that Poland would build an “armada of drones” using Ukrainian technology and expertise. How important is this for Poland?
Bartłomiej Babuśka: It is not merely important — it is of strategic importance. Just a thousand kilometers from here lies what is arguably the world’s most advanced military testing ground. We have a responsibility to think about security and the future. We also have a duty to cooperate with and support Ukraine, because this is not simply about helping a neighbor — it is about confronting threats to all of Europe. And every Pole understands this.
As a result of this war, relations between our nations are stronger than at any other point in history. We have never been this close before. The war has brought us closer together, and many of our historical grievances have been set aside.
Poland must work closely with Ukraine in the field of technology transfer and learn from Ukraine’s frontline experience, especially when it comes to the transformation of the modern battlefield. Warfare has changed fundamentally. Tanks and helicopters are no longer the decisive factor. Today, the battlefield is shaped by UAVs, ground robotic systems, counter-drone technologies, communications, and cybersecurity. No military has achieved the same level of expertise in these areas as the Ukrainian Armed Forces. So where else should Poland seek modern combat experience, if not from its neighbor and friend — a country it has supported in every possible way since the start of the war? Our cooperation is not optional; it is a strategic necessity.
UI: In which sectors would Polish industry like to cooperate with Ukraine?
BB: Speaking specifically, I have to return to the topic of the URC (Ukraine Recovery Conference) and the ongoing negotiations between our working groups on a Polish-Ukrainian intergovernmental agreement. These talks have been underway for several months. This year’s conference will be a major diplomatic event for Poland, and it is important that we produce a document representing a significant step forward in defining the framework for cooperation between our countries.
The future intergovernmental agreement must clearly define both the projects and the rules governing our cooperation. For example, Polish construction companies often win tenders in Ukraine but are later unable to implement their projects because the tenders are canceled or technical complications emerge. This highlights the need for transparent procedures that must be regulated at the governmental level.
We need to establish a transparent and fair system for selecting companies involved in Ukraine’s reconstruction, and this should be explicitly outlined in the agreement.
A tangible first step should be the launch of a pilot project to build a highway connecting the Korczowa–Krakivets border crossing with Lviv. In my opinion, this is the ideal project through which we can learn how to build an effective model of cooperation in practice. It is precisely on a project of this scale that all potential mistakes, weaknesses, and procedural bottlenecks are likely to surface.
POLAND AND UKRAINE MUST JOINTLY REDEFINE EUROPE’S ECONOMIC GEOGRAPHY
UI: When could the Korczowa–Krakivets–Lviv highway project actually begin?
BB: We expect more concrete answers during the URC in Gdańsk in June. Within the next two months, we should have clarity on when the relevant procedures will be launched. At the same time, it is important to understand that construction itself will not begin overnight. Bulldozers will not arrive on-site in a matter of weeks. First, tenders must be completed, followed by the design and planning phase. Realistically, at least a year will pass before the first excavator starts work.
It is also possible that after the design phase, implementation could be temporarily paused until the active phase of the war ends. That would also be a rational decision. But the Poles are not afraid. Six months ago, when the slogan “let’s go to Kyiv” was first voiced, the heads of Poland’s largest construction companies — Budimex, Polimex, Unibep, and Strabag — immediately traveled by train to Kyiv for negotiations.
UI: The Ukrainian side, including Presidential Strategic Affairs Adviser Oleksandr Kamyshin, has also spoken about strong expectations surrounding the signing in Gdańsk of a broad bilateral agreement and the first Polish-Ukrainian contracts...
BB: I believe Poland and Ukraine should also be united by another major economic objective: together, we must redefine Europe’s economic geography. Through cooperation on Ukraine’s reconstruction, we should create a major export corridor linking Europe with the Middle East.
The Ukrainian market is already extremely important for Poland. It accounts for approximately $14 billion in exports and is the seventh-largest destination for Polish exports. Naturally, once the war is over, those figures will increase even further.
But we need to think more strategically. If we build modern road and railway infrastructure leading to Odesa — including port infrastructure and perhaps, in the future, even a Polish port near Odesa — then Ukraine and Poland could jointly control a trade route capable of reshaping Europe’s export geography. This is an opportunity of historic proportions, and both our countries have an enormous stake in making it a reality.
At the Industrial Development Agency, we are already working on this concept, and Minister Paweł Kowal, the Polish government’s commissioner for Ukraine’s reconstruction, is also a strong supporter of the initiative.
POLAND IS WILLING TO ESTABLISH DEFENSE INDUSTRIAL JOINT VENTURES WITH UKRAINIANS
UI: Would you tell us about the Industrial Development Agency’s capabilities in terms of cooperation with Ukraine.
BB: We oversee Poland’s two largest special economic zones, which offer investors tax incentives of up to 70 percent. Ukrainian companies are already operating there. For example, near the city of Mielec there is the so-called “Aviation Valley,” and we also manage the Tarnobrzeg Special Economic Zone. Last year alone, we endorsed business support measures worth around one billion zlotys. I believe we are probably the most appealing economic zone in Europe.
UI: Am I correct in understanding that the ARP is encouraging Ukrainian companies to build partnerships with Polish firms?
BB: Yes, absolutely — and to take advantage of our support instruments as well. Every support mechanism available to Polish companies is equally accessible to Ukrainian businesses that establish operations in Poland.
UI: Does this also extend to the defense industry?
BB: Yes. We are fully ready to establish joint ventures in this sector.
UI: Are Polish companies themselves interested in this kind of cooperation today, particularly in the production of dual-use goods?
BB: I cannot speak for private companies as a whole, but I believe there is strong interest. Ultimately, it comes down to negotiations. We also have companies within the ARP structure that are pursuing such cooperation. For example, in the dual-use sector, our company Inofama SA is currently in talks with the Ukrainian investment fund Gloster about the production of unmanned systems for frontline needs. Importantly, these systems would be classified as dual-use products, meaning they would not require a special license.
UI: So during the URC in Gdańsk, can we expect joint contracts involving ARP enterprises to be signed?
BB: Yes. Another important point is that any Ukrainian company operating in Poland — whether inside a special economic zone or outside of it — can access our support instruments, including loans. Capital in Poland is currently cheaper than in Ukraine.
POLAND NEEDS BATTLE-TESTED TECHNOLOGIES
UI: What about the implementation of the SAFE program? Poland is expected to receive soon more than €40 billion in low-interest European loans. Is cooperation between Ukraine and Poland envisioned in projects financed through these funds?
BB: We are widely open to such cooperation because Poland needs technologies that have been proven on the battlefield.
UI: Presidential Adviser Oleksandr Kamyshin also remarked during the conference in Rzeszów that, compared with countries such as Germany — which is already establishing joint ventures with Ukraine — Poland still appears to be lagging behind. What is needed to make cooperation between Kyiv and Warsaw more effective?
BB: At the ARP, we do not see this as a problem. I invite everyone to the Agency — we are open to UI: How do you personally assess Ukrainian defense innovations, particularly ballistic missiles and FPV drones?
UI: How do you personally assess Ukrainian defense innovations, particularly ballistic missiles and FPV drones?
BB: I have lived between Ukraine and Poland for the past 20 years, so the creativity and ingenuity of Ukrainians do not surprise me. I consider Ukrainians to be one of the most talented nations in the world.
UI: What would you wish for Polish-Ukrainian cooperation in the future?
BB: First and foremost, peace for all of us. Secondly, I hope that this friendship — and the forgiveness of past historical grievances — will endure for generations. I wish our nations a common future built on friendship, trust, and partnership.
Putin continuously finances anti-Ukrainian and anti-Polish extremist movements in both of our countries. Yet despite these efforts, public sentiment in Poland is not anti-Ukrainian, just as sentiment in Ukraine is not anti-Polish. This demonstrates the strength of the mutual respect and cooperation that exists between our peoples.
Yurii Banakhevych led this conversation. Warsaw