EIB invests €640mn to foster sustainable growth in Ukraine

The operations are in line with the priorities of the Government of Ukraine and the European Union to support the long-term social and economic development of eastern Ukraine and integration of the conflict-affected regions as well as the development of sustainable municipal transport and the modernisation of the transport infrastructure in the country.

The European Investment Bank (EIB) and the Government of Ukraine today signed three loans totalling €640 million to foster the sustainable growth of Ukraine and the prosperity of its people. The operations are in line with the priorities of the Government of Ukraine and the European Union to support the long-term social and economic development of eastern Ukraine and integration of the conflict-affected regions as well as the development of sustainable municipal transport and the modernisation of the transport infrastructure in the country.

EIB President Werner Hoyer said: “The EIB is proud of our continuing contribution to the social and economic development of Ukraine in support of European Union policy in the country. Today, we are investing €640 million to overhaul and modernise infrastructure in conflict-affected eastern Ukraine, to improve the quality and reliability of public transport in up to 20 cities in the country, and to modernise 183 km of roads in eastern Ukraine’s Luhansk Region. This means the people of Ukraine will benefit from modern, safe and fast connections and the new business opportunities they bring. Refurbished schools, hospitals and public services will also help the country to recover faster from the pandemic and to increase its economic resilience. Together with our fellow EU institutions, the EIB looks forward to supporting Ukraine with projects like these and helping the country grow and develop faster and more sustainably as it progresses towards the EU.”

EIB Vice-President Teresa Czerwińska, who is responsible for operations in Ukraine, added: “With the projects signed today on infrastructure rehabilitation, better public transport and improved roads, the European Investment Bank reaffirms its commitment to helping Ukraine grow, develop and become an even better place for living and doing business. Our support will reach parts of Ukraine affected by the armed conflicts, and assist in their recovery. Rehabilitated schools, hospitals, kindergartens and other public buildings in eastern Ukraine, as well as improved roads in the Luhansk region, will make life easier for 13.7 million people, help boost economic growth, connect people and increase trade. Ukraine will also benefit from modern, efficient and green public transport, which is key to successful climate action, increasing the country’s contribution to global climate action. As the EU bank, we are happy to support the Government of Ukraine, and directly translate the EU-Ukraine partnership into concrete investments.

The Ambassador of the European Union to Ukraine Matti Maasikas said: “The European Union is proud to continue investing, together with the EIB, into two key areas – support for conflict-affected regions of eastern Ukraine and sustainable, green infrastructure. Renovating infrastructure to have better schools, hospitals, community centres and housing has been a key component of the EU’s support for social and economic recovery in the conflict-affected east. Improved and modern infrastructure is a major investment in the future of communities in eastern Ukraine. Road rehabilitation projects in the Luhansk region will have a direct impact on the economic and social recovery in eastern Ukraine. High-quality roads will bring tangible benefits to people, improving transportation links in the region and boosting the development of the agricultural sector. Urban mobility and sustainable, green public transport are high on the agenda of the European Union and among the priorities of Ukraine’s National Transport Strategy. By promoting a shift to more efficient and more environmentally friendly public transport, our investments will help local governments in selected cities to upgrade public transport and provide quality transport services to citizens.”

The Prime Minister of Ukraine Denys Shmyhal remarked: “I would like to sincerely thank the European Investment Bank for years of successful cooperation, for supporting Ukraine during its most volatile times, and the European Union for the complementary grant towards these operations. The loans signed today and the EU-funded technical assistance will help Ukraine to develop the economy and resilient society, including in the regions most affected by the conflict. Restored infrastructure facilities in Eastern Ukraine, reconstruction and advancement of roads in Luhansk Oblast, and sustainable public transport will offer economic, environmental and social benefits for Ukrainians for many years to come. We are grateful to the European Union for its continued support, which has not faltered but rather intensified during the coronavirus crisis. We are proud that Ukraine and the EU are moving forward together in these difficult times.”

€340 million to boost infrastructure resilience in Ukraine

The €340 million loans will support infrastructure rehabilitation and improve living and business conditions in conflict-affected regions of eastern Ukraine including oblasts that host a significant number of internally displaced persons (IDPs). Several hundred small to medium-sized projects will be financed at the municipal level to restore social infrastructure, improve public utility services and repair damaged administrative buildings and other key social infrastructure, including hospitals, schools, kindergartens, post offices, street lighting, sewerage systems, municipal transport and relevant transport infrastructure. The loan will benefit some 13.7 million people, boost regional development and promote faster economic growth in Ukraine.

Under the €340 million loan, the Ukrainian-controlled areas in the Donetsk and Luhansk regions, as well as the neighbouring Kharkiv, Dnipropetrovsk, Kherson and Zaporizhia regions and city councils in other regions of Ukraine that are accommodating significant influxes of internally displaced persons (IDPs) will receive hands-on support to mitigate the effects of the conflict.