The European Investment Bank (EIB) and the Economic Security Bureau of Ukraine (ESBU) will enhance collaboration in preventing, detecting, and addressing potential cases of fraudulent or other irregular practices that affect EIB-financed projects.
The EIB and ESBU have signed a memorandum of understanding to strengthen exchanges of information, operational support for investigations, and technical cooperation.
Since Russia’s invasion of Ukraine in February 2022, the EIB has provided more than €2 billion to meet Ukraine’s most immediate needs. Over the coming years, the EU bank plans to deploy at least €2 billion more from the Ukraine Facility to invest in critical public- and private-sector projects. Ensuring that this financial support reaches the intended beneficiaries, the people of Ukraine, and is not diverted by fraud and corruption is key.
The memorandum of understanding, signed by EIB Inspector General Monique Koning and ESBU Deputy Director Andrii Pashchuk, calls for sharing information on allegations of fraudulent or other irregular practices affecting EIB operations in Ukraine, aiding investigations and taking preventive measures aligned with the EIB Group Anti-Fraud and EIB Exclusion policies. These are the EIB’s two key policies to ensure integrity, transparency, and accountability of banking operations by preventing fraud and promoting ethical behavior.
“Accountability and transparency are especially important in the context of Ukraine’s reconstruction and EU accession process, which we at the EIB Group actively support through our investments,” said EIB Vice-President Teresa Czerwińska, responsible for the bank’s operations in Ukraine. “We have a mission and purpose of protecting public funds, be it EIB loans, EU grants or national funds. We are accountable to ensure that the money reaches the intended beneficiaries and to preserve the reputation and trust of the EIB Group. When we act together, especially in challenging environments like Ukraine, we can make a significant difference in the fight against fraud and corruption. Strengthening cooperation with Ukrainian law enforcement authorities like the ESBU is essential in these efforts,” added EIB Inspector General Monique Koning.
ESBU Deputy Director Andrii Pashchuk said: “The Economic Security Bureau of Ukraine has significant achievements in countering the inefficient use of budget funds and funds of international technical assistance. However, interaction with the EIB experts will definitely strengthen our work in this direction. This applies both to the exchange of information and to the exchange of experience with experts of the European Investment Bank.”
A zero-tolerance policy on fraud and corruption
The EIB has a zero-tolerance policy towards fraud and corruption. The Investigations Division of the EIB’s Inspectorate General conducts investigations into allegations of fraud and misconduct affecting EIB Group operations. Under the EIB Group’s Anti-Fraud Policy, the Inspectorate General can refer suspected cases to national authorities for further investigation or criminal prosecution and collaborate on exchanging information, best practices, and joint actions.
The EIB has a longstanding partnership with Ukrainian law enforcement agencies, including collaboration with the National Anti-Corruption Bureau of Ukraine (NABU) since signing a cooperation arrangement in 2018.