MARKET INSIGHT | EUROPE
Eastern Europe The Eastern European project pipeline for industrial construction amounts to $305.2bn, which Russia alone accounts for $129.2bn. Russia, Kazakhstan and Poland, as the three largest markets in the region, collectively accounting for 74.2% of the regional project pipeline by value. However, a lot of industrial projects in Russia have been postponed or cancelled since the start of the conflict in Ukraine. The Russian industrial construction market is also expected to encounter challenges owing to an increase in capital allocation
towards the defence sector and the effects of Western sanctions on exports. In late-February 2025, the EU released its sixteenth package of sanctions against Russia, which includes a ban on the import of primary aluminium by 2026. This package also includes a ban on the export of technologies and software to Russia for usage in oil and gas exploration works. Despite Western sanctions, the country’s manufacturing sector has continued to grow, owing to investments in defence-related manufacturing and in development of special economic zones (SEZ). In January 2025, the
Ministry of Economic Development announced that the construction work of the Khakass Technological Valley SEZ in Khakasiya is scheduled to receive approval in September 2025. Additionally, the government’s focus on investing $2.5bn in the semiconductor industry by 2030 is expected to support the sector’s output. To boost the demand for the auto sector, in January 2025 the Ministry of Industry and Trade announced its aim to invest $611.8m to provide subsidised car loans that will boost auto manufacturers’ ability to expand their manufacturing units.
Eastern Europe – Industrial construction project pipeline Value by stage ($ millions)
0
50,000
100,000
150,000
200,000
250,000 Pre-planning Planning Pre-execution Execution
Eastern Europe – Industrial construction project pipeline Value by stage and country ($ millions)
Russia
Kazakhstan Poland Hungary Belarus Romania Serbia
Uzbekistan Czechia Turkey
0 20,000 40,000 60,000 80,000 100,000 Pre-planning Planning Pre-execution Execution
Eastern Europe – Industrial construction project pipeline By country and stage ($ millions) Country
Russia
Kazakhstan Poland
Hungary Belarus Romania Serbia
Uzbekistan Czechia Russia
Total (including others)
Pre-planning 747
25 12 0 0
2,643 701 0 0
747 4,304 34 | August 2025 |
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Planning 24,707
3,164
14,523 2,553 0
4,017 3,988 1,221 4.721
24,707 73,122
Pre-execution 16,527
60,771 191 0
1,300 0
30
600 55
16,527 82,734
Execution 87,248
9,853 8,847
14,318 8,240 1,514 1,452 4,166 485
87,248 145,076 Total
129,229 73,813 23,573 16,871 9,540 8,174 6,171 5,987 5,261
129,229 305,236
120,000 140,000
300,000
350,000
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