EIB provides €16.5 million for new public transport in war-torn cities of Ukraine

This article is published in association with European Investment Bank.

• The €16.5 million of EU-backed funding will renew urban public transport in Kyiv, Mykolaiv, Ivano-Frankivsk and Odesa.
• The investment will deliver buses, dual trolleybuses and trams to the cities, ensuring resilient, reliable and sustainable transportation for businesses and residents.
• This financial support is part of the EIB’s Ukraine Solidarity Urgent Response package, under which the Bank has delivered more than €2 billion to Ukraine since 2022.

The European Investment Bank (EIB) has announced €16.5 million in EU-backed funding to renew urban public transport in Kyiv, Mykolaiv, Ivano-Frankivsk and Odesa. Backed by an EU guarantee, this operation is part of the EIB’s Ukraine Solidarity Urgent Response package, developed in close collaboration with the European Commission. Building on the previously disbursed €17.25 million for transport upgrades, this tranche underscores the European Union’s steadfast commitment to supporting Ukraine’s infrastructure recovery and resilience, including updates to transport systems that enable cities to address war-related losses and adapt to increasing urban demands.

The funding will enable the purchase of new buses, dual trolleybuses and trams, along with essential spare parts and maintenance equipment, ensuring reliable and efficient public transport operations in these cities. The vehicles will be sourced from a Turkish manufacturer and a German/Ukrainian consortium, providing residents with modern, environmentally friendly and comfortable transportation.

Since February 2022 over one-third of Ukrainians have been displaced from their homes, and cities like Kyiv, Mykolaiv, Ivano-Frankivsk and Odesa have received significant numbers of internally displaced persons from occupied territories. This investment will help these cities handle increased public transport demand, improve mobility within the cities’ borders, and build resilience while promoting sustainable and accessible transportation solutions.

EIB Vice-President Teresa Czerwińska, responsible for the Bank’s operations in Ukraine, said: “The war has brought immense challenges to Ukraine’s cities, forcing them to adapt quickly to the needs of a growing number of displaced peopleand disrupted infrastructure. By providing new buses and trams for Kyiv, Mykolaiv, Ivano-Frankivsk and Odesa, we aim to support local resilience and ensure safe, sustainable transport for residents. Alongside our EU partners, the EIB is committed to standing with Ukraine, delivering critical investments that not only rebuild but also lay the foundation for a stronger, more sustainable future.”

European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis said: “This €16.5 million in EU-guaranteed EIB funding will help rebuild and upgrade public transit systems in cities across Ukraine. With the support of its EU partners, Ukraine continues to make progress in improving the daily lives of its citizens, despite the challenges posed by Russia’s full-scale invasion. This is an important part of EU’s support for countries reconstruction where transport systems are playing a crucial role during the war and, in the medium-term, in rebuilding the country. The EU continues to support Ukraine and its people politically and economically.”

Deputy Prime Minister for Restoration of Ukraine – Minister for Development of Communities and Territories of Ukraine Oleksii Kuleba, said:“Russian aggression has caused serious damage to our transport systems, with hundreds of buses, trams and trolleybuses destroyed. We are not just replacing what was lost but bringing in new, reliable and comfortable transport to serve our people, even in the hardest times. This is how we respond to destruction by rebuilding, improving, and moving forward. We are grateful to our European partners, particularly the European Investment Bank, for their support in this process.”, said:“Russian aggression has caused serious damage to our transport systems, with hundreds of buses, trams and trolleybuses destroyed. We are not just replacing what was lost but bringing in new, reliable and comfortable transport to serve our people, even in the hardest times. This is how we respond to destruction by rebuilding, improving, and moving forward. We are grateful to our European partners, particularly the European Investment Bank, for their support in this process.”

Ukraine’s Minister of Finance Sergii Marchenko added: “The EIB’s €16.5 million investment in urban transport renewal for Kyiv, Mykolaiv, Ivano-Frankivsk and Odesa is a significant step towards rebuilding our transport infrastructure. This funding will improve public transit systems, enhance daily commutes, and contribute to the economic recovery of these cities. We deeply appreciate the European Union’s continued partnership and unwavering support for Ukraine’s development during these difficult times.”

Improving urban mobility in wartime Ukraine

This initiative is part of the broader Ukraine Urban Public Transport project, a €200 million loan from the EIB, complemented by €3.5 million in technical assistance from the European Union. The project aims to improve urban mobility in ten Ukrainian cities, aligning Ukraine’s public transport systems with EU standards.

Despite the challenges posed by the war, cities are making progress. Lviv has completed the acquisition of ten new trams, Lutsk has introduced 27 low-floor trolleybuses, Kyiv now operates 20 low-floor trams, Sumy residents benefit from 19 new trolleybuses, and Kharkiv has added 27 new trolleybuses to its fleet. Other cities continue to move forward, showcasing their resilience and commitment to renewing urban transport infrastructure.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of the Global Gateway. We aim to support €100 billion of investment by the end of 2027, around one-third of the overall target of this EU initiative. With Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to people, companies and institutions through our offices around the world.