New financing from EIB and European Commission signed in Berlin to mobilise more than €1 billion for Ukraine’s businesses and to rebuild local critical infrastructure

• New financing to restore social municipal infrastructure and essential services such as schools, kindergartens, hospitals and local transport in Ukrainian cities.
• Planned rollout of the high priority 112 European emergency call system, reconstruction of railways and border-crossing points with EU Member States, and Kyiv metro upgrade.
• EU guarantees to Ukrainian banks to mobilise over €1 billion in loans to support small and medium-sized enterprises.
• Finalisation of a new €300 million pan-European export credit guarantee facility planned to support small and medium-sized companies in the European Union exporting to Ukraine.
• Expansion of EU JASPERS advisory programme to launch and speed up projects on the ground.

Today, at the Ukraine Recovery Conference hosted by Germany and Ukraine in Berlin, the European Investment Bank (EIB) Group, in collaboration with the European Commission and the Government of Ukraine, signed a number of major projects and partnership agreements to support Ukraine’s economic and social resilience.

EIB Group President Nadia Calviño, who participated in the conference alongside EIB Vice-President Teresa Czerwińska, announced new financing signatures for two programmes of EU guarantees for Ukrainian banks, expected to mobilise over €1 billion in loans to support small and medium-sized enterprises (SMEs) in Ukraine. Signed with the European Commission, and backed by the EU budget, these guarantees will also benefit war-affected SMEs, veterans, internally displaced people, and female and young entrepreneurs, ensuring resources to sustain the Ukrainian economy and create jobs.

Another €100 million, also signed today, will help restore basic services in Ukrainian cities such as a clean water supply, and rebuild essential social infrastructure, including hospitals, social housing, schools and kindergartens.

Today’s announcements also include the extension of the European Union’s flagship JASPERS advisory programme to Ukraine. With JASPERS — a partnership between the European Commission and the EIB — a new €20 million EU advisory package will be put in place to support the Ukrainian government in preparing high-quality investment projects on the ground and enhancing technical capacity for the effective use of recovery funds, as outlined in the cooperation framework signed with the Government of Ukraine.

The EIB Group is also advancing other crucial projects for Ukraine, including the rollout of the 112 European emergency number and call system, the restoration of damaged railway lines, the upgrade of railway border-crossing points with EU Member States, and the modernisation of the Kyiv metro. These projects, closely aligned with Ukraine’s priorities in the Ukraine Plan, will be signed in the coming weeks with financing supported through the EIB’s EU for Ukraine Fund and the European Union’s €50 billion Ukraine Facility.

A plan for a new €300 million pan-European export credit guarantee facility to support small and medium-sized companies in the European Union exporting to Ukraine was also announced in Berlin. It will be managed by the EIB Group’s risk-capital subsidiary, the European Investment Fund, and the European Commission under its flagship investment programme InvestEU.

A number of new partnerships were also signed by the EIB Group to reinforce Ukraine’s energy security and its green transition through support for renewable energy and decarbonisation efforts, for example with Germany’s Federal Ministry of Economic Affairs and Climate Action and Ukraine’s Ministry for Communities, Territories and Infrastructure Development. The German government and the EIB will provide a €20 million grant for the Renewable Energy Solutions Programme (RES).

The EIB is also joining international alliances of governmental bodies, NGOs and private sector partners to promote sustainable growth, gender equality and skills development. Another key partnership expresses the intention to increase the availability of national currency financing to SMEs and municipalities.

Speaking from Berlin, EIB President Nadia Calviño said: “Ukraine is a member of our family. And today in Berlin, alongside our Ukrainian and EU partners, we have demonstrated that our support is unwavering. We have announced new projects and partnerships to mobilise investment of more than €1 billion for businesses hard hit by the war; to keep hospitals, schools and transport functioning and to rebuild housing and supply clean water and secure energy. The resilience of the Ukrainian people is inspiring. The continued support of the international community is also crucial, and the European Union can be relied upon to deliver.”

“By working closely with our Ukrainian partners, we have developed an action plan focusing on four key areas: critical national infrastructure, local social infrastructure, SME growth and resilience, and enhanced advisory support. Together with the European Commission, we will be able to achieve this using the best of our financial instruments available, including the EIB’s EU for Ukraine fund and the European Union’s Ukraine Facility,” added EIB Vice-President Teresa Czerwińska, who oversees the Bank’s operations in Ukraine.

European Commission Executive Vice-President for an Economy that Works for People Valdis Dombrovskis said: “We warmly welcome today’s agreements signed with the EIB to support Ukrainian businesses and help to restore basic services and facilities damaged by Russia’s aggression. Along with providing a lifeline for Ukraine’s economy, they reconfirm the European Union’s firm commitment to support Ukraine and mobilise finance for its economic recovery. The EU funding will help to create jobs and support smaller war-affected Ukrainian businesses in their recovery needs, as well as provide technical assistance to the Ukrainian government in using these recovery funds effectively on the ground. We will also support European companies to export to Ukraine and maintain open trade flows.”

First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine Yuliia Svyrydenko said: “I would like to thank the EIB and the European Commission for their continuous and substantial support of Ukraine. I cannot overstate the benefit of today’s signings to our economy. Unlocking over €1 billion in lending to local businesses in Ukraine will provide essential financial support and backing. I am also delighted that the recovery project we signed will make a significant difference for Ukrainians by improving medical facilities, education, social housing and other vital social infrastructure. New partnerships also reinforce Ukraine’s energy security, which is vital for Ukraine now. I am grateful to our partners for their invaluable advisory support and for extending the JASPERS programme to aid our overall recovery and development efforts in Ukraine.”

Berthold Goeke, Director of the Climate Protection Department at the German Federal Ministry of Economic Affairs and Climate Action, said: “Supporting decentralised solutions for the supply of renewable energies is an important component of the German government’s support for Ukraine. With our International Climate Initiative (IKI), we are also contributing to a secure and clean energy supply. I am convinced that the topic of climate neutrality can and must be included in all reconstruction projects. Ukraine’s resilience and its commitment to the climate and energy transition despite military threats are admirable. Together with many partners, we stand by their side.”

More information on the projects signed and announced today:

Mobilising more than €1 billion in loans for Ukrainian SMEs

This guarantee financing is designed for Ukrainian local banks and other financial intermediaries to improve access to finance for SMEs. Read more.

Repairing critical infrastructure in war-affected cities with €100 million investment

The EIB has provided €100 million to the Ministry for Communities, Territories and Infrastructure Development of Ukraine to support war-affected Ukrainian cities in repairing critical infrastructure. Read more.

Bringing EU’s flagship advisory service programme (JASPERS) to Ukraine

Together with the European Commission, the EIB announced a new €20 million agreement to roll out JASPERS (Joint Assistance to Support Projects in European Regions) advisory assistance for Ukraine. The programme will mainly support the Ukrainian authorities in the preparation of critical investments in the country. The cooperation framework detailing the implementation of the programme was also signed with the Ukrainian government. Read more.

Facilitating Ukraine’s green transition 

The EIB and Naftogaz, Ukraine’s national oil and gas company, signed a cooperation agreement for a €400 000 technical assistance grant from the EIB’s EU for Ukraine advisory programme. This strategy will focus on decarbonising energy supply and consumption, reducing greenhouse gas emissions, implementing energy efficiency solutions, increasing renewable energy generation, and developing low-carbon businesses to reduce emissions from end-user consumption. Read more.

The German government and the EIB will provide a €20 million grant for the Renewable Energy Solutions Programme (RES) to enhance renewable energy and improve energy efficiency in Ukrainian municipalities, complementing existing EIB framework loans.

Fostering local currency financing for SMEs and Mid-Caps

The EIB and Citibank Ukraine have announced their intention to collaborate on a local currency initiative and explore a potential revolving credit facility with an amount between $50 million and $100 million in Ukrainian hryvnia. This initiative aims to increase the availability of loans in the national currency to local businesses in Ukraine affected by the war.

Partnering with international alliances

The EIB has joined several alliances being launched at the Berlin conference, including the SME Alliance, the Coalition for Sustainable Municipalities, the Alliance for Gender-Responsive and Inclusive Recovery, and the Skills Alliance for Ukraine. These partnerships aim to support private sector growth, promote gender equality, and enhance skills development in Ukraine, reflecting the EIB’s commitment to these key areas.

Background information:

EIB in Ukraine

Present in Ukraine since 2007, the EIB has stepped up its financial support for the country’s resilience and modernisation since Russia’s full-scale invasion of Ukraine in 2022. Since then, the EIB has provided swift relief, disbursing €2 billion of financing for emergency repairs to the country’s ravaged infrastructure. Through its EU for Ukraine (EU4U) Initiative, coupled with its key role in implementing the European Union’s €50 billion Ukraine Facility, the EIB is strongly committed to stepping up and accelerating its activities 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.