The European Commission and the European Investment Bank (EIB) Group have announced a financing package of more than €600 million for reconstruction projects in Ukraine.
More than €450 million of the package would come as EIB Group financing backed by an EU guarantee extended by the Commission, the EIB announced on Wednesday.
The package also includes around €150 million in EU grants and technical assistance.
The EIB-backed financing is expected to support projects in areas including roads, railways, power grids and energy-efficiency upgrades for homes and public buildings. It also covers urban mobility and education facilities.
The announcement was made at the EU — Ukraine Business Summit in Brussels.
What the EU guarantee and Ukraine Facility are
An EU guarantee is a form of financial backing that can help a lender provide loans by reducing its risk, the Commission and EIB Group said.
The guarantee forms part of the Ukraine Investment Framework, which sits within the EU’s €50 billion Ukraine Facility for 2024 to 2027.
The Ukraine Facility is the EU’s financial assistance programme for Ukraine and is designed to support the state budget, stimulate investment and provide technical support.
EIB Vice-President Karl Nehammer said the EIB Group was “scaling up” support for investments including “energy security”, transport and housing.
European Commissioner for Enlargement Marta Kos said: “Now is a good time to invest in Ukraine,” it added.
Ukrainian Minister of Economy, Environment and Agriculture Oleksii Sobolev said additional EU guarantees were particularly relevant for public-sector projects and the recovery of critical infrastructure and the energy sector.
The EIB has been present in Ukraine since 2007 and has provided more than €4 billion in financing since Russia’s full-scale invasion in 2022.
