
Ukraine and France discuss cooperation within the framework of the new reconstruction fund and AFD support programmes
Additional EUR 200 million for Ukraine's reconstruction projects, development of social housing programmes, support for the private sector and industry, as well as France's participation in privatisation processes were discussed during a meeting between First Deputy Minister of Economy of Ukraine Oleksiy Sobolev and Special Envoy of the President of France for Ukraine's Relief and Reconstruction Pierre Heilbronn and Chief Executive Officer at Agence Française de Développement (AFD) Rémy Rioux.
The main topics discussed included the opportunities for cooperation under a new EUR 200 million fund to support reconstruction projects and integration with the European market. The fund was announced during the visit of Prime Minister of Ukraine Denys Shmyhal to Paris in June.
Currently, the Ukrainian and French sides are considering a strategy for working together under the fund, priority sectors of cooperation, and project financing opportunities. It is expected that only part of the funding will come from the French budget, while the rest will be co-financed by Ukrainian state-owned or private companies, international partners, foreign foundations or governments.
The creation of the new fund is a continuation of cooperation between Ukraine and France under the EUR 200 million intergovernmental grant agreement signed by the governments in July 2024. Under this agreement, 19 projects have already been selected in the areas of healthcare, infrastructure, energy, demining and water supply to be implemented by
French companies in cooperation with Ukrainian businesses and communities. The allocation of an additional EUR 200 million was made possible due to the high interest of the French private sector: three times as many applications for funding were submitted, so France decided to expand its support programme.
"France is an example for other countries in implementing various financial mechanisms for Ukraine's recovery. The new financial support fund will allow us to implement projects not only to rebuild infrastructure but also in other sectors. It will also help us to establish new multilateral partnerships and attract additional investments. Together, we can expand opportunities and attract even more resources for economic recovery and growth," said Oleksiy Sobolev.
The parties also discussed further cooperation with the French Development Agency (AFD), which has been operating an official representative office in Ukraine for a year. The key areas of cooperation include:
- financial support programmes for public institutions and the private sector, including SMEs;
- providing Ukrainians with affordable housing, including the development of social housing programmes;
- AFD's support in implementing corporate governance and privatisation reform;
- expanding investment protection mechanisms;
- France's assistance in providing equipment to industrial enterprises together with partner countries;
- preparing for the Ukraine Recovery Conference (URC2025) in Rome.