EU approves new EUR 1.5 billion investment package to support Ukraine's recovery, reconstruction, and modernization: Ministry of Economy, Environment and Agriculture
On March 5, at a meeting of the Steering Board of the Ukraine Investment Framework (UIF), the investment component of the Ukraine Facility, a new package of eight investment programs aimed at addressing Ukraine's most pressing economic and social challenges was approved.
These programs, with a total value of EUR 1.5 billion, are expected to attract up to EUR 3.4 billion in new investments over the next three years. The funds are to be directed to key sectors of the economy, including energy, education, infrastructure, agriculture, and small business development. Funding for the construction of shelters in educational institutions is also planned.
For the first time within the UIF, funding will be directed towards supporting dual-use technologies and strategic sectors. This is in line with the European Commission's commitment announced at the EU-Ukraine Investment Conference in November last year.
"The Ukraine Investment Framework is one of the most effective tools for attracting investment to rebuild and modernize the Ukrainian economy. The Ukrainian Government, together with the European Commission and international financial institutions, is working to ensure that these investments are transformed as quickly and efficiently as possible into new projects in key sectors of the economy.
The private sector plays a special role in this process, as it is capable of providing the greatest multiplier effect for economic growth and reconstruction in Ukraine in the long term," said Oleksii Sobolev, Minister of Economy, Environment, and Agriculture of Ukraine.
Joint efforts of Europe
The sixth meeting of the Ukraine Investment Framework Steering Board, chaired by the European Commission, brought together EU member states, representatives of the European Parliament, the Government and Verkhovna Rada of Ukraine, the Government of Norway, as well as key European and international financial institutions.
The implementation of new UIF programs will be ensured by financial institutions. In particular, banks that already cooperate with the European Commission in Ukraine (EBRD, IBRD, KfW, IFC), as well as new partners (Finnvera, Bpifrance, CDP), demonstrating the importance of the UIF's role as a platform for attracting new partners.
"Together with our partners, we are working to improve the mechanisms for implementing UIF programs, accelerating procedures, and developing investment risk mitigation tools, which will allow for more effective attraction of long-term financial resources to support new projects and priority sectors of the economy," said Yegor Perelygin, Deputy Minister of Economy, Environment, and Agriculture of Ukraine, during the meeting.
To date, EUR 8.4 billion has already been allocated within the UIF, which is 90% of its total funding. These funds are expected to mobilize up to EUR 25.2 billion in investments in Ukraine.
Background information
The Ukraine Investment Framework (UIF) is the investment component of the Ukraine Facility, a EUR 50 billion instrument, of which EUR 9.5 billion is allocated to the UIF in the form of guarantees (EUR 7.8 billion) and blended finance (EUR 1.7 billion). The platform's goal is to mobilize investments for the upgrade of Ukraine's economy, reconstruction, and sustainable development in line with Ukraine's Plan and EU policies.