European Commission and EIB Group sign €2 billion guarantee under Ukraine Facility to support country’s reconstruction and resilience

This article is published in association with European Investment Bank.

• The agreement further supports urgent recovery and reconstruction projects in Ukraine.
• The financing will target critical infrastructure, including energy, transport, housing, water and heating, to sustain essential services and economic stability.
• Part of the EU’s €50 billion Ukraine Facility, this investment supports Ukraine’s priorities: to build back better and advance its EU integration.
• Additionally, an agreement signed between the EIB and the Government of Ukraine will deploy experts under the EIB’s JASPERS advisory programme to help accelerate the projects on the ground.

The European Investment Bank (EIB) Group and the European Commission signed a guarantee agreement at the EIB Group Forum that will allow the EIB to invest at least €2 billion in urgent recovery and reconstruction efforts in Ukraine. Aligned with the Ukrainian government’s needs and priorities, this funding is part of the European Union’s €50 billion Ukraine Facility for the period 2024-2027. 

The funds will support public sector operations across key sectors. Investments will focus on strengthening Ukraine’s energy networks, including energy grids, expanding hydropower and renewable energy production, and improving energy efficiency. They will also go toward modernising railways, improving urban public transport, and upgrading transport connectivity, including EU-Ukraine Solidarity Lanes and border crossing points along key export routes. In addition, the financing will help restore municipal infrastructure, such as water and heating systems, public lighting, as well schools, hospitals and higher education institutions. The first projects under this Ukraine Facility guarantee were announced during EIB President Nadia Calviño’s recent visit to Kyiv.

To further support the implementation of EIB investments under the Ukraine Facility, the EIB and the government of Ukraine have also signed an agreement to deploy a team of advisory experts on the ground in Kyiv. This team will provide hands-on expertise to accelerate the preparation and execution of critical projects and strategic documents – starting with energy, transport and housing and expanding to other sectors, including Ukraine’s public investment management reform. This initiative is being delivered by EIB advisory through a €20 million JASPERS advisory package for Ukraine, jointly financed by the European Commission and the EIB’s EU for Ukraine advisory programme in 2024, ensuring targeted and effective support for the country’s recovery.

EIB President Nadia Calviño said: “Ukraine’s security is the European Union’s security. We stand by the country. Today, we express that commitment once again with the signature of agreements with the European Commission and the Ukrainian government to step up our support. This will allow us to make crucial investments in the recovery of Ukraine’s critical infrastructure and key public services, reinforcing the country’s resilience and its path towards integration into the European Union.”

 “Ukraine’s recovery and reconstruction are at the heart of the Team Europe approach, and we are working together to ensure that vital investments reach the areas where they are needed most in Ukraine. This is not just about today. We are helping Ukraine build back better and lay the foundations for a stronger, more sustainable future within the EU,” added EIB Vice-President Teresa Czerwińska, who oversees the Bank’s operations in Ukraine.

European Commissioner for Enlargement Marta Kos said: “This guarantee agreement with the EIB underscores the European Union’s important role in supporting Ukraine as it faces the fourth year of Russia’s brutal war of aggression. We will stand by Ukraine for as long as necessary and with the intensity required. This new guarantee will help Ukrainians rebuild their country. It will help restore water and heating systems, schools and hospitals.”

European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis said: “The European Commission and the EIB Group have been working hand in hand to provide crucial support to Ukraine since Russia began its brutal, full-scale invasion. Today, our commitment to Ukraine has never been stronger. With this €2 billion agreement, we are providing further support for Ukraine’s urgent recovery and reconstruction needs, which includes repairing critical infrastructure and ensuring essential public services are maintained. The EU’s support for Ukraine is, and will remain, steadfast.”

Yuliia Svyrydenko, Ukraine’s First Deputy Prime Minister and Minister of Economy, said, “The European Union and its institutions, particularly the EIB, remain steadfast partners in Ukraine’s recovery. We are accelerating investment projects that address our most pressing strategic needs, ensuring rapid reconstruction and modernisation. Each project brings Ukraine closer to the EU, strengthening our resilience and integration into the European family. We also welcome the deployment of JASPERS advisory support on the ground, which will help ensure the efficient implementation of these critical investments.”

Background information  

The Ukraine Facility is the European Union’s financial assistance programme for Ukraine. During the 2024-2027 period, €50 billion will be allocated by the European Union to finance the state budget, stimulate investment and provide technical support in the implementation of the programme.

The Guarantee Agreement signed today is covered by the Ukraine Investment Framework (UIF), as part of Ukraine Facility. The UIF is designed to attract public and private investments for the recovery and reconstruction of Ukraine. It is endowed with financial instruments totalling €9.3 billion, with €7.8 billion in loan guarantees and €1.5 billion in blended finance.

The aim of the UIF is to mobilise €40 billion of investments for the recovery, reconstruction, and modernisation of Ukraine.

The EIB in Ukraine 

The EIB Group has been supporting Ukraine’s resilience, economy and efforts to rebuild since the very first day of Russia’s full-scale invasion, with €2.2 billion disbursed since the start of the war. In 2024, the Bank supported projects aimed at securing Ukraine’s energy supply, repairing critical infrastructure that has been damaged, and ensuring that essential services continue to be delivered across the country.