First agreement under EU export credit guarantee programme for Ukraine: EUR 20 million to support EU exports to Ukraine via Danish agency EIFO

The European Investment Fund (EIF) and the Export and Investment Fund of Denmark (EIFO) have signed the first agreement under the European Union’s Export Credit Guarantee Programme for Ukraine. This initiative aims to support European companies working with Ukraine and strengthen Ukraine’s economic integration with the EU.

The signed guarantee – the first of 13 similar agreements being prepared in EU member states – provides up to EUR 20 million in financing for export credit operations, enabling around 40 Danish companies to expand their presence in the Ukrainian market.

The EIF’s guarantee mechanism is part of the innovative “export credits” programme, supported by the European Commission’s InvestEU initiative.

According to EIB Group President Nadia Calviño, this export credit agreement – the first of thirteen – underscores the European Union’s commitment to a strong Ukraine within the European family. Ensuring trade links between the EU and Ukraine is a key factor in supporting Ukraine’s economy and deepening bilateral relations on the path to Ukraine’s future EU membership.

“In 2024, according to Eurostat, EU exports to Ukraine reached EUR 42.8 billion – a 9.4% increase compared to 2023. This shows that Ukraine remains a stable and significant market for European goods, from machinery and transport to pharmaceuticals and clean technologies. The export credit guarantee mechanism, implemented by the European Investment Bank Group and the European Commission, helps mitigate risks for European companies. Through national export credit agencies, this tool gives businesses the confidence to work with Ukrainian partners and develop trade. This initiative supports Ukraine’s economy and facilitates our gradual integration into the EU single market. We value this support and see it as a vital contribution to recovery and development,” said First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko.

European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis expressed his approval of the signing of the first EUR 20 million agreement under the export credit guarantee mechanism for Ukraine between the Danish Export and Investment Fund and the European Investment Fund. He noted that, with EU budget support, the mechanism supports European businesses in maintaining and expanding trade links with Ukraine. He described it as a significant step towards deeper economic integration between the EU and Ukraine, which he considered a key element of Ukraine’s EU accession process. He also expressed his expectation that other member states would utilise the mechanism and contribute to the success of this important initiative.

This first agreement with EIFO marks the start of approximately 13 similar agreements in EU member states. The export credit programme, which provides around EUR 300 million in guarantees to support European small and medium-sized enterprises and mid-cap companies, has already received applications far exceeding available funding just weeks after its launch in July 2024, reflecting strong interest from European businesses.

Danish Minister for Industry, Business and Financial Affairs Morten Bødskov stated that Ukraine’s fight for freedom was also Denmark’s fight for freedom and that Ukraine’s future lay in the West. He highlighted that closer economic alignment represented a powerful step in the right direction. He noted that Danish businesses had consistently demonstrated their leadership in Ukraine’s reconstruction process. He explained that the initiative facilitated deeper cooperation between Danish and Ukrainian companies, offering tangible support to Danish firms eager to work in Ukraine while also providing assistance to their Ukrainian partners. He described this as a significant contribution to shaping Ukraine’s future.

Background

The European Investment Fund (EIF), part of the European Investment Bank (EIB) Group, supports small and medium-sized enterprises across EU countries by providing access to financing through a wide network of authorised financial intermediaries. The EIF designs and implements equity and debt financing instruments to promote entrepreneurship, innovation, green and digital transitions, and job creation.

The InvestEU Programme provides long-term EU funding by mobilising public and private investments. It consolidates EU financial instruments into a single framework, simplifying access to financing and enhancing its efficiency. The programme consists of three components:

• InvestEU Fund (EU budget guarantee of EUR 26.2 billion);
• InvestEU Advisory Hub;
• InvestEU Portal.

Its overarching goal is to mobilise over EUR 372 billion in investments between 2021 and 2027.

EIFO, Denmark’s national development bank and export credit agency, operates in over 100 countries with a transaction volume exceeding EUR 20 billion. EIFO offers financial solutions to support Danish companies, promotes the green transition, and invests in technology and Denmark’s defence industry. The agency actively collaborates with global partners, including in Ukraine.