EIB Group and European Commission Strengthen Commitment to Ukraine’s Recovery with €2 Billion Investment

This initiative is part of the European Union’s €50 billion Ukraine Facility for the 2024-2027 period and aligns with the Ukrainian government’s priorities.

The European Investment Bank (EIB) Group, in partnership with the European Commission, has signed a landmark guarantee agreement that will facilitate a minimum investment of €2 billion towards Ukraine’s urgent recovery and reconstruction efforts. This initiative is part of the European Union’s €50 billion Ukraine Facility for the 2024-2027 period and aligns with the Ukrainian government’s priorities.

Supporting Critical Infrastructure and Public Services

The funding will be directed towards essential public sector projects spanning multiple key sectors. Investments will primarily focus on enhancing Ukraine’s energy networks, including reinforcing energy grids, expanding hydropower and renewable energy capacity, and improving energy efficiency measures. Moreover, significant resources will be allocated to modernizing the country’s railways, upgrading urban public transport, and improving transport connectivity. This includes strengthening the EU-Ukraine Solidarity Lanes and border crossing points that play a vital role in facilitating exports and trade.

Additionally, the financing will contribute to restoring crucial municipal infrastructure. This includes repairing and modernizing water and heating systems, enhancing public lighting, and supporting the reconstruction of schools, hospitals, and higher education institutions. The first projects under this Ukraine Facility guarantee were announced during EIB President Nadia Calviño’s recent visit to Kyiv.

On-the-Ground Advisory Support for Effective Implementation

To bolster the implementation of these projects, the EIB and the Ukrainian government have also signed an agreement to deploy a team of advisory experts in Kyiv. This specialized team will provide hands-on expertise to accelerate the preparation and execution of crucial projects, focusing first on energy, transport, and housing. Their mandate will eventually expand to include public investment management reforms and other critical sectors.

This advisory support is being implemented through a €20 million JASPERS advisory package, co-financed by the European Commission and the EIB’s EU for Ukraine advisory program in 2024. This ensures targeted and efficient support for Ukraine’s recovery and modernization.

High-Level Endorsements from EU and Ukrainian Leaders

EIB President Nadia Calviño emphasized the importance of the agreement, stating: “Ukraine’s security is the European Union’s security. We stand by the country, and today’s agreements reaffirm our unwavering commitment. These investments will be instrumental in rebuilding Ukraine’s critical infrastructure and key public services, reinforcing resilience and integration into the European Union.”

EIB Vice-President Teresa Czerwińska, responsible for operations in Ukraine, added: “Ukraine’s recovery and reconstruction are central to the Team Europe approach. Our collaboration ensures that essential investments reach the areas most in need. Beyond immediate rebuilding, this initiative lays the groundwork for a more sustainable future for Ukraine within the EU.”

European Commissioner for Enlargement Marta Kos reiterated the EU’s steadfast support: “This guarantee agreement with the EIB highlights the EU’s vital role in aiding Ukraine as it endures the fourth year of Russia’s brutal war. We will support Ukraine for as long as necessary, helping to rebuild critical infrastructure, including water and heating systems, schools, and hospitals.”

European Commissioner for Economy and Productivity Valdis Dombrovskis also reinforced the commitment: “Since the start of Russia’s full-scale invasion, the European Commission and the EIB Group have worked hand in hand to support Ukraine. This €2 billion agreement furthers our mission to address urgent recovery needs and maintain essential public services. The EU’s support remains steadfast and unwavering.”

Ukraine’s First Deputy Prime Minister and Minister of Economy, Yuliia Svyrydenko, welcomed the initiative: “The EU and its institutions, particularly the EIB, continue to be steadfast partners in Ukraine’s recovery. We are accelerating investment projects that address strategic priorities, ensuring rapid reconstruction and modernization. Each project strengthens our resilience and brings us closer to full integration into the European Union. The deployment of JASPERS advisory support is a crucial step in ensuring efficient project implementation.”

A Stronger Future for Ukraine within the European Union

This initiative represents a significant step towards rebuilding Ukraine’s economy, infrastructure, and public services, ensuring that the country emerges stronger and more resilient. With continued support from the European Union and the EIB Group, Ukraine is on a clear path towards sustainable development and closer integration with the EU.

The European Investment Bank and the European Commission remain committed to supporting Ukraine’s long-term recovery, reinforcing the country’s capacity to rebuild and thrive in the face of ongoing challenges.