Poland’s Foreign Ministry Warns Against Investments in Lviv

The Polish Ministry of Foreign Affairs is advising companies against investing in Lviv, citing an ongoing, unresolved legal dispute between local authorities and the Polish firm Control Process over a waste management contract.

Ministry of Foreign Affairs Issues Warning

The Polish Ministry of Foreign Affairs, led by Radosław Sikorski, has officially advised Polish companies against investing in Lviv. The warning stems from a long-standing conflict between Lviv authorities and the Polish company Control Process, which was contracted to build a mechanical-biological waste treatment complex in the city.

Deputy Minister Władysław Teofil Bartoszewski clarified that this recommendation specifically concerns Lviv rather than Ukraine as a whole. The ministry maintains that despite numerous political and diplomatic interventions, the issue remains unresolved, casting doubt on the local legal and administrative environment for foreign investors.

The Control Process Dispute

Control Process faced significant challenges while constructing a municipal waste processing facility, with the project approximately 95 percent complete before relations deteriorated. The company estimates losses of 17–18 million euros. In March, the Lviv municipal enterprise, Green City, issued a notice terminating the contract, alleging that the contractor failed to meet project requirements and documentation standards.

The Polish firm has firmly rejected these accusations, noting that the project continued despite the full-scale war. Control Process points to difficulties caused by the city’s actions and payment delays as the primary reasons for any project timeline issues.

Arbitration and Legal Standstill

The core of the issue involves ignored arbitration rulings. Control Process has successfully navigated arbitration proceedings, with the case reaching the International Chamber of Commerce in Paris. The arbitration tribunal reportedly found the termination of the contract and attempts to change the jurisdiction of the dispute to be illegitimate.

Poland’s Foreign Ministry views this disregard for international arbitration as a critical red flag for Polish companies considering future participation in Ukrainian reconstruction. The government emphasizes that participation depends not only on political declarations but also on the security of legal contracts and their enforcement.

Distinction from Reconstruction Conferences

The Polish Ministry of Foreign Affairs has distanced itself from the “Lviv Day of Resilience” event held in Gdańsk, noting it was organized by Mayor Andrij Sadowy independently of the official Ukraine Recovery Conference (URC26). Officials emphasized that this separation is intentional, as Poland seeks to lead reconstruction efforts while refusing to validate local authorities currently in open conflict with a Polish contractor.