Home MOREBUSINESS & ECONOMY EIB approves “EU for Ukraine” Initiative to finance Ukraine recovery and reconstruction

EIB approves “EU for Ukraine” Initiative to finance Ukraine recovery and reconstruction

by gary cartwright
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The Board of Directors of the European Investment Bank (EIB) today approved the EU for Ukraine Initiative, a new scheme to finance reconstruction and recovery in Ukraine. The EU for Ukraine Initiative is conceived as a temporary scheme which will enable continued EIB engagement in the country while expected medium term EU support is put in place.

The EIB also agreed EUR 1.8 billion financing for sustainable transport, corporate innovation, clean energy, climate action and digitalisation across Europe and around the world.

As part of the EU for Ukraine Initiative, the EIB will establish the EU for Ukraine Fund to enable European Union member states, the European Commission and other countries and donors to support reconstruction and recovery in Ukraine. The EU for Ukraine Fund will provide credit enhancement to EIB loans for both public and private sector investment.

The EU for Ukraine Initiative will be accompanied by a EUR 100 million dedicated technical assistance package. This will provide best-practice reconstruction advisory expertise in both Ukraine and Moldova and help develop priority investment projects, assisting Ukrainian and Moldovan project promoters facing challenging circumstances.

“The European Investment Bank has stood side by side with Ukraine since the first days of the war and was among the first international financial institutions to respond to Ukraine’s immediate needs. Today’s decision will allow the EIB to continue operating within Ukraine in coordination with other IFIs, while longer term EU budget resource allocations for Ukraine are prepared.  The EU Bank’s initiative responds to calls from EU and Ukrainian leaders to remain active and contribute to meeting the country’s growing needs. As discussed with Ukraine’s Deputy Prime Minister Oleksandr Kubrakov (pictured) and the mayors of Myrhorod and Kamianske this week, reconstruction is already ongoing and Ukraine urgently requires increased assistance from international partners,” said Werner Hoyer, President of the European Investment Bank.

“The EIB, the bank of the European Union, is committed to continuing to support Ukraine with the EU for Ukraine Initiative, approved today by our Board of Directors, that will unlock immediate and medium-term financing for critical infrastructure. We are working closely with the Ukrainian government, the European Commission, the World Bank and others within the G7 Donor Coordination Platform for Ukraine to ensure we have a collaborative approach to meeting Ukraine’s urgent needs. We have a strong pipeline of projects and are ready to support our Ukrainian counterparts with technical assistance and financing necessary to rebuild and restore essential services, enable businesses to survive and support Ukraine on the path to EU accession in the months and years ahead,” said Teresa Czerwińska, Vice President of the European Investment Bank.

“Rebuilding Ukraine and enabling our country to recover will require huge investment efforts combining technical sector expertise and financial support. The European Investment Bank is one of the key partners for rebuilding Ukraine and the new EU for Ukraine Initiative allows us to continue restoring basic services, rebuilding energy and transport networks and ensuring that Ukrainian companies can withstand the conflict,” said Oleksandr Kubrakov, Deputy Prime Minister for Restoration of Ukraine.

Backing priority investment in Ukraine

Earlier this week, Ukrainian Deputy Prime Minister Kubrakov (pictured) briefed the EIB Board of Directors on the acute challenges facing Ukraine and outlined the short and medium-term public and private investment priorities in the country. The “EU for Ukraine” initiative follows requests by both the European Council and Ukrainian leaders to rapidly scale-up support for Ukraine’s most urgent infrastructure needs.

The EU for Ukraine initiative will allow the EIB to scale up financing, using contributions from donors, to repair damaged energy and transport networks, back municipal investment to provide services for displaced people and improve access to finance by Ukrainian entrepreneurs in coordination with Ukrainian and international partners.

The new initiative will also enable financing to support restoration of critical infrastructure including energy, transport, health, social services and district heating, cyber security, and business investment.

The EU for Ukraine initiative will support priority reconstruction and recovery investment in sectors identified by the Government of Ukraine, World Bank, European Commission, and United Nations in the second Rapid Damage and Needs Assessment published earlier this month

The scheme will both strengthen municipal and social infrastructure investment, including repairing damage to services, improving support for internally displaced people, and enhancing access to finance by businesses across Ukraine. This will include providing finance to companies who have lost exports and wish to re-orientate towards EU markets.

EU for Ukraine is conceived as a temporary measure which will allow the EU Bank to remain active in the country while proposals for the mid-term review of the EU’s multiannual financial framework (MFF) are drawn up.

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