EIB provides €100 million to strengthen economic resilience and heating infrastructure in Ukraine

This article is published in association with European Investment Bank.

• €70 million will go to Ukrgasbank to keep Ukrainian businesses operating and protect jobs during the war, while advancing energy efficiency investments.
• €30 million will be directed to repairing and upgrading municipal district heating systems via Ukrgasbank and Ukreximbank, ensuring reliable heat supply for communities during the war.
• The funding is backed by the EU for Ukraine Fund and the Ukraine Investment Framework, demonstrating the European Union’s ongoing commitment to Ukraine’s recovery and resilience.

The European Investment Bank (EIB), the bank of the European Union, has disbursed a total of €100 million to support economic resilience and critical municipal heating infrastructure in Ukraine. The financing is part of a coordinated Team Europe effort backed by the EIB’s EU for Ukraine Fund and the European Commission’s €1.95 billion guarantee under the Ukraine Investment Framework, which is part of the broader €50 billion Ukraine Facility. It demonstrates the European Union’s continued support to sustain Ukraine’s economy and ensuring essential public services.

€70 million to support Ukrainian businesses

€70 million has been disbursed to Ukrgasbank under the €400 million Ukraine Economic Resilience Facility Lending Envelope. The project is backed by the EIB’s EU for Ukraine Fund, which is supported by EU Member States. The financing will expand access to long-term loans for micro, small and medium-sized enterprises (MSMEs) and mid-caps across the country, helping to sustain employment and support the resilience of Ukraine’s private sector.

The loan also contributes to Ukraine’s green transition by supporting investments that reduce greenhouse gas emissions and improve energy efficiency. Ukrgasbank will on-lend the funds to businesses on more favourable terms made possible by the EIB financing, making financing more accessible and affordable for Ukrainian enterprises.

€30 million to restore and strengthen municipal district heating

€30 million has been disbursed (€15 million to Ukrgasbank and €15 million to Ukreximbank) as the first tranches of larger EIB district heating loans (€50 million and €100 million, respectively), guaranteed under the European Commission’s Ukraine Investment Framework.

The financing will be on-lent to communities and public utilities to repair and upgrade district heating systems, improve energy efficiency in public buildings and deploy renewable energy solutions, thereby reducing dependence on vulnerable centralised infrastructure. It will also enable the timely reconstruction of facilities damaged by Russia’s attacks, strengthening the resilience and energy security of communities across Ukraine. As a result, municipalities will have more independent and efficient heating systems for schools, hospitals and residential communities.

EIB Vice-President Teresa Czerwińska, who oversees the bank’s operations in Ukraine, said: “The disbursement of these funds ensures that support is now reaching Ukrainian businesses and municipalities at a critical time. It helps keep local economic activity going and enables communities to maintain heating and essential public services during the winter. We are working in close cooperation with the European Commission, the government of Ukraine, local partner banks and local authorities to make sure this assistance is delivered effectively and where it is most needed.”

“This is now the fourth winter in which Russia tries to keep Ukrainians in the cold. We are seeing the worst attacks on energy infrastructure in this war. EU support is helping rebuild a stronger and more resilient energy system. The EU is helping to restore power plants and investing in district heating, in expanding renewables, and in making buildings more energy efficient. Together we make sure schools, hospitals, and homes remain warm this winter”, said Marta Kos, European Union Commissioner for Enlargement.

“Support from the European Investment Bank is extremely important for the sustainable reconstruction of Ukraine. Owing to these funds, we will be able to finance businesses and communities that are restoring critical infrastructure and implementing district heating and energy-efficient solutions throughout the country,” emphasised Acting Chairperson of the Management Board of Ukrgasbank Rodion Morozov.

“The first tranche of funding under the EIB’s Ukraine district heating project, made possible through the steadfast support of the European Union and European Investment Bank, provides Ukrainian communities with the means to withstand the challenges of winter under continuous attacks of Russia. It reinforces the reliability of heat supply, modernises vital infrastructure and promotes energy efficiency, safeguarding the needs of residents, especially in the cold season,” said Chairman of the Management Board of Ukreximbank Viktor Ponomarenko.

This support complements the recently signed EIB financing with Naftogaz Ukraine to help replenish the country’s gas reserves ahead of winter, highlighting a broader, coordinated EU effort to strengthen Ukraine’s energy resilience during the war.

Background information

The Ukraine Investment Framework (UIF) is part of the €50 billion EU Ukraine Facility 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. In March 2025, the EIB entered into a €1.95 million guarantee agreement with the European Union to support its operations in Ukraine. This guarantee is provided under UIF. The aim of the UIF is to mobilise €40 billion of investments for Ukraine’s recovery, reconstruction and modernisation.

The EU for Ukraine Fund (EU4U) was established by the EIB in 2023 as an additional instrument to support Ukraine’s recovery and rebuilding efforts. The fund has received contributions from 16 EU Member States – Belgium, Croatia, Cyprus, Denmark, Estonia, Finland, France, Italy, Ireland, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Slovakia and Spain – bringing its total size to €410 million. The fund aims to accelerate EIB support for Ukraine’s most urgent infrastructure needs and help sustain the country’s economy. It enables the financing of both public and private sector projects, supporting the reconstruction of critical municipal infrastructure and improving access to finance for entrepreneurs.

The EIB in Ukraine 

The European Investment Bank (EIB) has been working in Ukraine since 2007. Following Russia’s full-scale invasion in 2022, the Bank has stepped up its financial support to help strengthen the country’s resilience and rebuild its infrastructure. Since then, the EIB has provided €4 billion in financing for Ukraine. Through its EU for Ukraine (EU4U) Initiative, coupled with its key role in implementing the Ukraine Investment Framework, a dedicated window of the Ukraine Facility, the EIB is strongly committed to accelerating its activities in line with the mandate given by EU leaders, in close cooperation with the European Commission, the European Parliament, Member States and international partners.