- Two disbursements totalling €99.6 million have been made for the reconstruction of nearly 200 projects across 18 Ukrainian oblasts, including close to conflict zones and in recently liberated territories.
- This reconstruction effort will benefit 900 000 internally displaced persons and boost the country’s war resilience.
- Supported by an EU guarantee, this funding addresses the ongoing challenges Ukraine is facing due to Russia’s war, rebuilding critical infrastructure.
The European Union and its bank, the European Investment Bank (EIB), remain steadfast in their support for Ukraine, with a disbursement of €99.6 million to assist the Ukrainian government. This funding will rebuild and upgrade critical infrastructure, including hospitals, social housing and public services nationwide, all of which are facing ongoing challenges due to unceasing Russian shelling. This financial contribution is part of the EIB’s Ukraine Solidarity Urgent Response package, backed by an EU guarantee.
The funds are being disbursed in two tranches of €60 million and €39.6 million, respectively, which are key to the implementation of the EIB’s recovery programmes by the Ukrainian government. This financing will enable the reconstruction of nearly 200 small-scale municipal and social infrastructure projects across various crucial sectors in Ukraine. These projects encompass multiple oblasts of Ukraine, including Chernihiv, Dnipropetrovsk, Kharkiv, Kyiv, Mykolaiv, Odesa, Sumy, Volyn and Zhytomyr.
The funding will prioritise major repairs, reconstruction and some new construction of hospitals, public buildings and social housing, as well as wastewater and water facilities. These improvements will benefit the Ukrainian population, including approximately 900 000 internally displaced persons.
EIB Vice-President Teresa Czerwińska, who is responsible for the Bank's operations in Ukraine, said: “Ukraine, like most countries hurt by war, needs strong partnerships and resources, or else spillover effects become even more disruptive. A hundred hospitals, social housing units and educational facilities have already been renovated with our support and thanks to the incredible efforts and determination of the Ukrainian government, municipalities and construction workers. We are honoured to stand with them, providing the necessary financing for new life-changing projects, ensuring sustainable, energy-efficient and rapid recovery.”
European Commission Executive Vice-President for an Economy that Works for People Valdis Dombrovskis said: “We warmly welcome the EIB’s latest disbursements to Ukraine to carry out major repairs to damaged critical infrastructure. This is vital to ensure that the Ukrainian people continue to benefit from basic services such as housing, hospitals and water facilities. Backed by an EU guarantee, they are another valuable contribution to financing Ukraine’s urgent requirements as its people come under relentless pressure from Russia’s brutal war machine.”
Deputy Prime Minister for Restoration of Ukraine and Minister for Communities, Territories, and Infrastructure Development Oleksandr Kubrakov said: “Even amidst the war, we continue to rebuild Ukraine, ensuring people receive treatment in modern hospitals and access to social housing, and providing education to children in safe schools and kindergartens, all while maintaining uninterrupted essential services. The steadfast support of the EU and its bank, the EIB, is vital in these efforts, making us stronger.”
Ukrainian Minister of Finance Sergii Marchenko said: “Amidst the challenges of full-scale war, the Government of Ukraine remains resolute in supporting our citizens, with the continued assistance from key partners - European Union and its bank, the EIB. Ongoing disbursements within the Ukraine Early Recovery and Ukraine Recovery Programmes underscore our shared commitment to prioritising vital support for the people of Ukraine, fostering normalcy, and rebuilding life in Ukrainian municipalities.”
Background information
The Ukraine Early Recovery and Ukraine Recovery Programmes — two multi-sectoral framework loans from the European Investment Bank signed with Ukraine in 2014 and 2020 and totalling €540 million — have played a vital role in supporting Ukraine. Backed by the European Commission, these initiatives aim to assist the Ukrainian government and municipalities in financing the refurbishment of critical social infrastructure. This not only enhances services but also improves living conditions for internally displaced people and their host communities. As of the end of 2023:
- The Ukraine Early Recovery Programme has successfully completed 100 sub-projects, including the construction and renovation of 53 education buildings, 39 health facilities, nine housing units, four administrative buildings, three cultural centres, one library and one sports centre. Some of these projects were carried out despite the challenging backdrop of shelling and blackouts in 2022-2023. Currently, more than 60 projects are in various stages of reconstruction.
- The Ukraine Recovery Programme has identified 141 sub-projects across Ukraine. These include construction projects for healthcare and social housing buildings, as well as water and waste sector improvements.
The Ministry for Communities, Territories and Infrastructure Development of Ukraine coordinates the programme together with the Ministry of Finance, while the reconstruction projects are fully managed by local government bodies. The United Nations Development Programme (UNDP) in Ukraine provides technical assistance for the initiative, ensuring the effective and efficient implementation of sub-projects.
The EIB’s support for Ukraine since the start of Russia’s full-scale invasion in 2022 has amounted to €1.7 billion of financing dedicated to emergency repairs for the country’s ravaged infrastructure. The EU bank also provided a €4 billion credit line to support the integration of refugees from Ukraine in EU countries. Through the EU for Ukraine initiative and its fund, the Bank remains committed to stepping up its activities in Ukraine, in line with the mandate given by EU leaders and in close cooperation with the European Commission, the European Parliament, EU Member States and international partners.
