The President of the European Commission, Ursula von der Leyen, unveiled today a new €2.3 billion package of agreements with international and bilateral public financial institutions to support Ukraine's recovery and reconstruction efforts. It shows the EU's steadfast commitment to Ukraine's recovery and its future in the EU.
The new €2.3 billion package of agreements signed with international and bilateral public financial institutions under the Ukraine Investment Framework, includes €1.8 billion in loan guarantees and €580 million in grants. It is expected to mobilise up to €10 billion in investments in Ukraine.
In addition, delivering on her commitment at last year's Ukraine Recovery Conference in Berlin, President von der Leyen announced, in a Team Europe approach, the largest equity fund in Ukraine: a new European Flagship Fund for the Reconstruction of Ukraine, backed by the European Commission – through the European Investment Bank – France, Germany, Italy and Poland.
With an initial capital of €220 million, the Fund aims to mobilise €500 million by 2026 – with further fundraising foreseen as security conditions improve. The Flagship Fund will foster the development of a private equity ecosystem in Ukraine, attracting new capital and maximising synergies with existing market players.
The President said: "Today, the EU reaffirms its role as Ukraine's strongest partner. Not just its top donor, but a key investor in its future. With €2.3 billion in agreements signed, we aim to unlock up to €10 billion in investments to rebuild homes, reopen hospitals, revive businesses, and secure energy. This is solidarity in action. Ukraine is moving closer to the EU every day — in energy, education, roaming, and culture. Europe stands with Ukraine — today and tomorrow."
Stepping up EU investment in Ukraine's future
Today's agreements include:
- Supporting SMEs: €500 million in guarantees and grants to help Ukraine's small businesses, including start-ups and those employing veterans and displaced persons.
- Mobilising strategic investments: €600 million for large-scale private sector projects in key sectors like energy, transport, and manufacturing.
- Rebuilding cities and communities: €520 million for municipal infrastructure in war-affected areas, including healthcare, urban mobility, and housing.
- Energy security and green transition: €265 million to stabilize Ukraine's energy grid, rebuild renewable energy capacity, and improve energy efficiency.
- Critical infrastructure: €310 million to repair and rebuild critical infrastructure, including housing, hospitals, and medical facilities.
With the launch of these new investment programmes, total EU commitments under the Ukraine Investment Framework now amount to €5.7 billion, expected to leverage over €18 billion in investments.
Delivering budgetary stability to Ukraine
The European Commission also announced its proposal for the fourth disbursement under Pillar I of the Ukraine Facility – the Ukraine Plan – expected in August. This fourth payment, worth up to €3.05 billion,
In parallel, the Commission is disbursing €1 billion today under the sixth instalment of the EU's €18.1 billion Macro-Financial Assistance (MFA) package to Ukraine, which is to be fully paid out by the end of 2025. With this payment, the Commission's total lending to Ukraine under this MFA reaches €8 billion since the start of the year.
Closer links with Ukraine
While the EU is taking steps to support Ukraine's recovery and reconstruction efforts, it is also strengthening the country's institutions and promoting long-term sustainability. In this context, the conference will be the opportunity to showcase and present key initiatives to reinforce Ukraine capacities, such as the recent launch of the EU4Reconstruction programme, which will promote good governance and help Ukraine implement reforms and manage reconstruction, or the endorsement of the Memorandum of Understanding with the private insurance sector, which will help unlock investment flows and provide war-risk coverage. The EU is also stepping up defence initiatives, including the Strategic Armaments Facilitation Europe (SAFE) and reforms to the European Defence Fund, which will benefit Ukraine's industry and military efforts.
The EU is also supporting Ukraine's cultural and educational development, as well as its path to EU integration. A new Team Europe initiative will deploy over 60 coordinated actions to protect cultural assets and support heritage professionals, while an additional €2 million under Creative Europe will be allocated to support Ukrainian artists and cultural institutions. The EU is also moving to associate Ukraine to the Erasmus+ programme, allowing young Ukrainians to study, train, and grow alongside their peers across Europe. Furthermore, Ukraine is making progress on its path to EU integration, with key achievements including the implementation of new preferential trade arrangements and the upcoming launch of the "Roam Like at Home" initiative, which will allow Ukrainians to use their mobile phones in the EU at no extra cost and extend the same benefits to Europeans who may be in Ukraine.
Background
This Ukraine Recovery Conference 2025, held in Rome on 10-11 July, has for objectives to keep the international focus on Ukraine's recovery, during the war and after. It's a platform for aligning political support and mobilising funding.
This year's conference marks the fourth edition in a series of annual high-level political events dedicated to Ukraine's swift recovery and long-term reconstruction in the wake of Russia's full-scale war of aggression.
President Ursula von der Leyen participated in the Ukraine Recovery Conference Executive Vice-President Raffaele Fitto, along with Commissioners Valdis Dombrovskis, Andrius Kubilius, Marta Kos, Dan Jørgensen, Ekaterina Zaharieva and Glenn Micallef also took part.
