The Russian war in Ukraine has had a devastating impact on the country’s people, infrastructure and economy. In view of this extremely challenging situation in Ukraine, the Board of Directors of the European Investment Bank (EIB) on Monday approved a further €1.59 billion of financial support for Ukraine to address the country’s infrastructure financing gap and urgent needs. €1.05 billion will be made available immediately.
This relief package is part of the EIB Ukraine solidarity response prepared in cooperation with the European Commission. It benefits from the EU guarantee under the external lending mandate and complements €668 million of immediate financial support for Ukraine provided by the EIB in early March 2022.
The second relief package under the EIB Ukraine solidarity response will help essential services to resume and get the most critical infrastructure up and running again, strengthen the country’s resilience and maintain economic stability. It consists of two blocks of intervention:
- Immediate financial assistance totalling €1.05 billion. This will consist of upfront disbursements under eight existing finance contracts. It will help the Ukrainian government to cover priority short-term financing needs, provide support to strategic state-owned companies, ensure urgent repairs of damaged infrastructure, resume the provision of disrupted municipal services, and support urgent energy and energy efficiency measures in preparation for the cold season.
- Resuming implementation of EIB-financed projects in Ukraine totalling €540 million where possible, excluding areas of active hostilities and territories not controlled by the Ukrainian government. The selected projects will cover energy, energy efficiency, roads, transport, education and infrastructure, as well as reconstruction and recovery programmes. The exact timing of these disbursements will depend on the state of advancement of underlying projects.
The package will provide much-needed immediate support to the Ukrainian economy.
To rebuild Ukraine, we need strong global support and growing financial assistance. I am grateful to the EIB and the European Union for the long-standing cooperation and financial support and for standing with Ukraine for as long as it takes. This €1.59 billion is a further meaningful contribution to the country’s immediate financing needs, which are under unprecedented pressure due to Russia’s invasion. With this financial support, we will keep working on restoring damaged infrastructure, resuming the provision of municipal services, including transport services, and preparing for the coming heating season.
Valdis Dombrovskis, European Commission Executive Vice-President for an Economy that Works for People, said: “The European Union continues to stand by Ukraine and its people in the face of Russia’s brutal aggression. This EIB support will keep strategic public sector companies financially viable and able to carry out urgent repairs of critical infrastructure, resume the provision of essential services and address other immediate needs of the Ukrainian people, including those displaced by Russia’s war. The European Commission will keep working with EU Member States and our international partners to support Ukraine on every level — for as long as it takes.”
Follow EU Today on Social media:
