The European Investment Bank (EIB) and the Government of Ukraine have agreed on a strategic cooperation framework supporting Ukraine’s reconstruction, recovery, and EU integration efforts. This reinforced partnership places future investments within critical public and private sector initiatives that will be supported by funds from the EIB’s EU for Ukraine Fund and the European Union’s €50 billion Ukraine Facility, in which the EIB plays a key implementing role.
The memorandum signed calls for the rapid implementation of ongoing EIB projects in Ukraine, with the country having access to €500 million in EIB loan funds and €60 million in EU grant funds in 2024. It outlines an envelope of at least €2 billion from the Ukraine Facility, which the EIB is prepared to invest in critical public sector projects such as housing and public building renovation, municipal infrastructure, energy, roads, railways, healthcare, and civil protection. These include the modernization of key export routes and railway lines, enhancements in hydroelectric and renewable energy production, and the strengthening of Ukraine’s national electricity grid and healthcare facilities.
The memorandum also highlights the EIB’s enhanced support for private sector growth, including funding and risk-sharing instruments such as partial portfolio guarantees. This will enable local financial intermediaries to provide vital access to finance for local small and medium businesses (SMEs) on favorable terms.
Additionally, the agreement outlines stronger advisory support for Ukraine by opening up the highly-rated advisory services program JASPERS (Joint Assistance to Support Projects in European Regions) to help prepare significant investments and improve capabilities to meet EU standards.
The memorandum was signed by EIB President Nadia Calviño and Ukrainian Prime Minister Denys Shmyhal at the Spring Meetings 2024 in Washington, with EU Commissioner Valdis Dombrovskis witnessing and endorsing the agreement during the signing ceremony.
EIB President Nadia Calviño said: “Together with Prime Minister Denys Shmyhal, we agreed to enhance our cooperation to facilitate and speed up the deployment of EU financial support and investment in projects on the ground for the benefit of the Ukrainian people, including essential energy infrastructure, roads, railways, hospitals, housing, and civil protection initiatives. The European Union’s €50 billion Ukraine Facility and a dedicated €100 million envelope for advisory services will enable us to intensify our support to the country in the path towards EU membership.”
Ukrainian Prime Minister Denys Shmyhal said: “We are grateful for the European Investment Bank’s steadfast and continuous support. Today’s memorandum confirms our commitment to accelerate work on current projects and also emphasizes our focus on preparing for new EIB investments in critical public and private initiatives that will be closely aligned with our strategic needs and the Ukraine Facility. It is a key factor in building a resilient and self-sufficient economy. All these projects and this memorandum will significantly facilitate Ukraine’s rapid recovery and bring us closer to the European Union.”
European Commission Executive Vice-President for an Economy that Works for People Valdis Dombrovskis said: “Today’s agreement between the EIB and Ukraine could not have come at a better time. It will accelerate the EU’s work to get vital investments into Ukraine, now in the third year of battling Russia’s brutal aggression. It will make it easier to support the country’s efforts to maintain essential services, repair war-damaged infrastructure and modernize its export routes. It will also scale up EU support for private initiatives and for smaller local businesses, helping Ukraine’s economy to grow. These efforts will be supported by the EU’s €50 billion Ukraine Facility through to 2027; proof of the EU’s longstanding commitment to support Ukraine at a time of its greatest need.”