On 6 March, during a forum in Luxembourg, the European Commission and the European Investment Bank (EIB) signed a guarantee agreement that will allow the EIB to invest at least EUR 2 billion in urgent recovery and reconstruction projects in Ukraine.

The agreement will help ensure the continued implementation of urgent recovery and reconstruction projects in Ukraine. This financing, aligned with the priorities of the Government of Ukraine, is part of the EU’s Ukraine Facility, a financial support mechanism for Ukraine.

“The European Union and its institutions, in particular the EIB, remain reliable partners in Ukraine’s recovery. We are accelerating investment projects that meet our most urgent strategic needs, ensuring rapid reconstruction and modernisation. Every project we implement brings Ukraine closer to the EU, strengthening our resilience and integration into the European family,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

Nadia Calviño, President of the EIB, stated that the security of Ukraine was also the security of the European Union. She expressed support for Ukraine and mentioned that they were reaffirming this commitment by signing agreements with the European Commission and the Government of Ukraine. These agreements aim to strengthen support, enabling critical investments to rebuild Ukraine’s key infrastructure and public services, thus enhancing the country’s resilience and its journey toward European Union integration.

EIB Vice-President Teresa Czerwińska, who oversees the Bank’s operations in Ukraine, emphasized that Ukraine’s recovery and reconstruction were central to Team Europe’s efforts. She highlighted their collaboration to ensure that critical investments reach the areas in Ukraine where they are most needed. She also stated that their work is not just focused on the present but aims to help Ukraine rebuild better and establish a foundation for a stronger and more resilient future within the European Union.

The funds will be used to finance government projects in key sectors, namely to strengthen Ukraine’s energy networks, including the expansion of hydropower and renewable energy production, and to improve energy efficiency.

In addition, the funding will support the modernisation of railways, the development of urban public transport and the improvement of transport infrastructure, including the Solidarity Lanes initiative, which provides for the implementation of projects aimed at improving transport links between Ukraine and the EU.

The funds will also help to restore municipal infrastructure such as water supply, heating systems, street lighting, schools, hospitals and higher education institutions. The first projects under this guarantee have already been announced during the recent visit of EIB President Nadia Calviño to Kyiv.

Background

The Ukraine Facility is the European Union’s financial assistance programme for Ukraine. In the period 2024-2027, the European Union will allocate EUR 50 billion to finance the state budget, stimulate investment and provide technical support for the implementation of the programme.

EIB in Ukraine

The European Investment Bank Group has been supporting Ukraine’s resilience, economy and recovery since the first days of russia’s full-scale invasion, providing more than EUR 2.2 billion since the start of the war. In 2024, the Bank supported projects aimed at securing Ukraine’s energy supply, restoring critical infrastructure and ensuring the continuity of essential services across the country.