Finnish SMEs and midcaps will benefit from a new EU-backed export guarantee scheme helping them trade with Ukraine despite wartime risks. The European Investment Fund (EIF), part of the EIB Group, and Finnvera, Finland's official export credit agency, have signed a new guarantee agreement to support Finnish small and medium-sized enterprises (SMEs) and mid-caps exporting to Ukraine. The €30 million pilot under InvestEU programme is part of the EU's broader efforts to strengthen economic ties with Ukraine and support its reconstruction and EU accession process.
The agreement enables Finnvera to issue export credit transactions to Finnish companies trading with Ukraine, backed by an EIF guarantee under the InvestEU Export Credit Guarantee Facility. It is one of 13 agreements being prepared with national export credit agencies across EU member states under this facility.
The pilot will support Finnish SMEs and mid-caps with fewer than 500 employees, helping them manage risks and access new opportunities in Ukraine despite the ongoing war. The EIF guarantee complements a national loss-sharing mechanism introduced by the Finnish Ministry of Economic Affairs and Employment, which allows Finnvera to issue export guarantees to Ukraine under exceptional conditions.
European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis said: "I welcome this €30 million agreement under the EU's Ukraine export guarantee credit facility to support Finnish SMEs exporting to Ukraine. Backed by the EU budget and the European Investment Fund, the export facility supports EU businesses to continue trade and strengthen our economic ties with Ukraine. In doing so, it promotes the further integration of the EU and Ukrainian economies and the reconstruction of Ukraine. I look forward to more agreements being concluded using this facility in the near future for the benefit of both EU businesses and the Ukrainian economy."
Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine said: "It is encouraging to see strong interest from export credit agencies in EU Member States like Finland in supporting Ukraine's recovery and strengthening economic ties. This kind of engagement is exactly what Ukraine needs, and we are grateful to the European Commission and the EIB Group for creating mechanisms that open up new trade opportunities between Ukraine and the EU. A strong economy is key to our resilience and future integration."
"We have made significant efforts to get the scheme up and running quickly, recognising its potential to strengthen EU SMEs and support Ukraine's economic sustainability at a critical moment," said Marjut Falkstedt, Chief Executive of the EIF. "The introduction of the guarantee is an important step, and similar agreements in other EU countries will further extend the impact."
"Launching the pilot is an important step in preparing for the financing of Ukraine's reconstruction," added Juuso Heinilä, CEO of Finnvera. "From Finnvera's perspective, it is essential that we can support Ukraine's rebuilding efforts while also creating opportunities for Finnish companies to play a significant role in Ukraine. We see Ukraine as a key factor in Europe's future growth and are working broadly with various financial instruments to strengthen the export potential of Finnish companies."
The InvestEU Export Credit Guarantee Facility is a joint initiative of the European Commission and the EIB Group. It aims to provide up to €300 million in guarantees to support EU SMEs and small mid-caps exporting goods and services to Ukraine. The facility was launched in July 2024 and has seen strong demand across Member States.
Background information
Finnvera is a state-owned special financing company and Finland's official export credit agency. Its mission is to promote the establishment of new businesses, support growth, investments, and restructuring, and facilitate internationalization and exports through financing. Finnvera currently employs 372 people, serves around 21,100 customers, and operates through 15 offices across Finland. By law, the Finnish state covers 50% of Finnvera's credit and guarantee losses on domestic financing. At the end of 2024, Finnvera's balance sheet totaled €14.8 billion.
About the EIF
The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe's small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF furthers key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability, and more. In Estonia, commercial banks such as Swedbank, SEB, LHV, Luminor, and Citadele have previously entered into similar agreements with EIF.
About the InvestEU programme
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union's policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
