EU Establishes €300 Million Export Credit Guarantee Facility to Boost Trade with Ukraine

In the coming weeks, the EIF will issue a Call for Expression of Interest to begin offering guarantees to export credit agencies (ECAs).

The European Commission, the European Investment Bank (EIB), and the European Investment Fund (EIF) have today announced the creation of a €300 million export credit guarantee facility under the EU's InvestEU programme. This new facility will support European small and medium-sized enterprises (SMEs) exporting goods and services to Ukraine. The agreement was signed during the ECOFIN meeting of EU Finance Ministers in Luxembourg, where support for Ukraine was a key topic.

In the coming weeks, the EIF will issue a Call for Expression of Interest to begin offering guarantees to export credit agencies (ECAs). This initiative will aid businesses in EU Member States, as well as Norway and Iceland, that seek to export to Ukraine. By reducing financial risks, the facility aims to encourage EU businesses to increase exports to Ukraine, thus revitalizing trade and strengthening economic ties, contributing to Ukraine's economic recovery.

EIB Group President Nadia Calviño stated, "In partnership with the European Commission, we have taken an important step today to support trade between the EU and Ukraine. This facility will mitigate risks for EU companies exporting to Ukraine and provide essential goods and services, such as materials, machinery, technologies, and vehicles, supporting the country's resilience and reconstruction. The agreement will enable European businesses to play a crucial role in Ukraine's recovery, reinforcing economic ties and deepening connections ahead of Ukraine’s eventual accession to the EU."

EIF Chief Executive Marjut Falkstedt commented, "Today’s agreement marks a significant extension of the InvestEU programme, enabling our €300 million Ukraine export credit guarantee facility. This partnership between the European Commission and the EIB Group will support European businesses by providing the necessary guarantees to manage some of the risks they face, and aid Ukraine’s economic recovery during this critical period."

European Commission Executive Vice-President Valdis Dombrovskis said, "This pilot facility reaffirms the EU’s unwavering commitment to support Ukraine, its recovery, and reconstruction. By helping European SMEs export to Ukraine, these credit guarantees will strengthen Ukraine’s economy, encourage much-needed private investment, and boost trade. This economic boost comes at a crucial time as Ukraine progresses towards EU accession."

European Commissioner for the Economy Paolo Gentiloni added, "With the extension of our InvestEU programme, we are reinforcing our strong support for Ukraine's economic recovery and reconstruction. The new facility will make it easier for European SMEs to export goods and services to Ukraine, further deepening our economic ties. This is positive news for Ukraine at this critical juncture and a vote of confidence in its path to EU accession."