- Unveiled by EIB Group and European Commission, package covers hydropower plants, district heating for communities, roads, bridges, border crossings and small companies.
- Ten Member States – Denmark, Finland, France, Germany, Italy, Latvia, Romania, Slovakia, Slovenia, and Spain – joining the InvestEU's pioneering export credit facility to support trade with Ukraine and sustain its economy
- With the new agreements, EIB Group support to Ukraine reaches €3.6 billion since the start of Russia's full-scale invasion in 2022.
The European Union is stepping up economic support for Ukraine with almost €600 million in fresh financing for energy systems, transport networks and a range of businesses in the country. The European Investment Bank (EIB) Group and the European Commission announced the new EU funding package at a "Ukraine Recovery Conference" today in Rome. Most of the financing takes the form of EIB loans, which are backed by EU guarantees.
The package includes financing for critical infrastructure. The goal is to restore major hydropower plants, upgrade municipal district-heating systems across Ukraine, repair key Ukrainian roads and bridges and improve border crossings.
Today's announcements also include a package of financing for Ukrainian small and medium-sized enterprises (SMEs). The support is being delivered through new loans and EU-backed guarantees provided by the EIB Group to Ukrainian banks including Ukrgasbank, Ukreximbank, Bank Lviv, Kredobank and a subsidiary of Greece-based Piraeus Bank. This step will unlock yet more financing for small Ukrainian businesses.
The EIB Group is also advancing its support for exports to Ukraine, with 10 EU Member States joining the InvestEU Ukraine Export Credit Pilot. The guarantee facility is managed by the European Investment Fund (EIF), which is part of the EIB Group. Each participating country's export credit agency is receiving an EIF-backed guarantee to support national exports by SMEs and small Mid-Caps of goods and services to Ukraine.
To support the Ukrainian government in translating its recovery priorities into real investments, the EIB has launched an Infrastructure Project Facility (Ukraine FIRST – IPF) – a key component of the new Ukraine FIRST project preparation programme, developed in partnership with the European Bank for Reconstruction and Development (EBRD) and the European Commission.
"Backed by the EU budget, the facility supports EU businesses to continue and step up trade with Ukraine. It represents a significant step forward in further integrating the EU and Ukrainian economies, which is a crucial element of Ukraine's accession process," said European Commissioner for Economy Valdis Dombrovskis.
"Rebuilding a strong, modern Ukraine. That is exactly what today's EU-backed finance agreements will achieve. With support for resilient energy systems, transport networks, and businesses. Building hope and opportunity," said European Commissioner for Enlargement Marta Kos.
"The agreements announced today reflect the strength of our commitment to Ukraine, and our determination to respond to the country´s most urgent needs – through critical infrastructure, support for businesses in Ukraine and EU companies wanting to trade and export to the country," said EIB President Nadia Calviño.
"Every investment we make is driven by fundamental human needs – the need for safety, warmth and the chance to build a better future. That's why we help communities rebuild, keep homes warm, and support Ukrainian businesses," said EIB Vice-President Teresa Czerwińska, who oversees the bank's operations in Ukraine.
"Communities are at the heart of the Restoration. Our main aim is to support their recovery and development, first and foremost, in the regions that suffered from armed aggression," said Oleksii Kuleba, Deputy Prime Minister for Restoration of Ukraine – Minister for Development of Communities and Territories of Ukraine. "This starts with providing reliable infrastructure — roads and bridges that reconnect communities and power solutions that secure our energy system. And support for small and medium-sized businesses creates a strong foundation for the economic development of communities. With EIB backing, we're making critical progress where it's needed most."
To deepen support for Ukraine's private sector, the EIB welcomed the initiative to establish the European Flagship Fund for the Reconstruction of Ukraine – a new EU-backed equity fund being developed with the European Commission and several Member States.
As a result of a substantial grant from the German government through its International Climate Initiative (IKI) Fund, the EIB will be able to enhance support for Ukrainian communities' green transition. And to ensure speedy grant deployment, the EIB is teaming up with the German Agency for International Cooperation (GIZ) and the United Nations Development Programme (UNDP).
Another part of the package announced in Rome is an EIB Group partnership with Ukraine's State Audit Service to strengthen oversight of investments.
