- EIB commits more than €450 million to support Ukrainian energy infrastructure crucial for upcoming winter.
- New initiative to increase local-currency lending and EIB guarantees to facilitate access to financing for Ukrainian businesses also announced.
- EIF to roll out this month €300 million export-credit guarantee for EU companies trading with Ukraine.
The European Investment Bank (EIB) Group will expand its support for Ukraine’s economy by strengthening critical energy infrastructure, facilitating access to financing for businesses and boosting trade with the EU. EIB Group President Nadia Calviño briefed European Union foreign ministers about the latest round of support measures at a meeting today in Brussels.
The EIB Group plans new loans totalling €450 million for Ukrainian energy investments including the reconstruction of hydropower plants and electricity grid infrastructure damaged by Russian attacks, as well as for the restoration of the district heating networks in Ukrainian cities. A further €86 million will go to Ukraine’s national grid operator, Ukrenergo, to build anti-drone shelters for power stations. Those measures are meant to strengthen the resilience of the Ukrainian energy system through the next heating season.
“We are stepping up our support to help shield and repair Ukraine’s infrastructure ahead of the winter,” said President Calviño. “I am also informing ministers about our steadfast support to Ukrainian businesses. Economic resilience is key to the reconstruction enabling the country’s rebuilding”.
President Calviño also had a regular videoconference today with Ukrainian Finance Minister Sergii Marchenko, to follow up on the progress in ongoing projects, particularly regarding energy infrastructure. This was followed by a working lunch with EU foreign ministers at the Foreign Affairs Council in Brussels.
Business support
In the business-financing component of the latest support package, the EIB Group approved three partial portfolio guarantees expected to generate over €110 million in new lending to Ukrainian micro, small and medium-sized enterprises through a trio of Ukrainian banks. The guarantees are due to be signed in the second half of 2024 with the corresponding banks and will support 550 Ukrainian companies, sustaining approximately 8,250 jobs. Additionally, the EIB Group aims to provide partial portfolio guarantees to five more banks in Ukraine by the end of the year under the EU4Business Guarantee Facility.
On top of this, EIB this week is joining forces with UKRSIBBANK, a subsidiary of BNP Paribas Group and one of Ukraine’s largest banks, to establish a revolving credit facility of at least €150 million in Ukrainian hryvnia to support war-affected businesses. This local-currency credit facility is expected to be in place by the end of 2024. It marks the EIB’s second initiative to boost local- currency lending in Ukraine following a partnership with Citibank Ukraine worth between $50 million and $100 million in Ukrainian hryvnia.
Furthermore, by the end of this month and following an agreement signed with the European Commission in June, the EIF will launch a Call for Expressions of Interest under a €300 million export-credit guarantee facility to support EU companies trading with Ukraine. The initiative will offer guarantees to export-credit agencies in EU Member States as well as Norway and Iceland that wish to aid exports to Ukraine. Backed by the EU’s flagship InvestEU programme, the facility aims to revitalise EU-Ukraine trade and bolster the Ukrainian economy.