EIB and European Commission provide €15 million to support local recovery and essential services in Ukraine

This article is published in association with European Investment Bank.

• €15 million in EU-guaranteed funding has been disbursed to help restore essential social services like hospitals and schools damaged by the Russian war of aggression.
• The support will reach communities across all of Ukraine, with priority for frontline areas.
• The financing is being provided under the Ukraine Investment Framework, part of the EU’s €50 billion Ukraine Facility.

The European Investment Bank (EIB), the bank of the European Union, has disbursed €15 million to help Ukrainian communities restore vital services and livelihoods. The operation is backed by an EU guarantee under the Ukraine Investment Framework, which forms part of the broader €50 billion Ukraine Facility.

Disbursed through the EIB’s Ukraine Recovery III programme and backed by a €100 million guarantee, the funds will support small-scale recovery projects in several oblasts, including Dnipropetrovsk, Zaporizhzhia, Zhytomyr, Kyiv, Mykolaiv, Odesa, Poltava, Sumy, Ternopil, Kharkiv, Kherson and Chernihiv.

The financing will be used to help communities in many sectors by rebuilding district heating systems, installing new cogeneration units, upgrading boiler house power supply, and building small cogeneration plants to make heat and electricity more reliable. In the health sector, the programme will also support the renovation of surgical buildings and the energy-efficient upgrade of major hospital facilities. Water projects will include new drinking water pipelines, rehabilitation of water intakes, and improvements to local water supply networks to ensure stable access to clean water. There will be fast-tracked construction of shelters and emergency centres, which are expected to save lives in communities close to the frontline.

EIB Vice-President Teresa Czerwińska, who oversees the Bank’s operations in Ukraine, said: “Our support, delivered through the EIB’s recovery programmes, goes directly into practical projects that municipalities can move on with immediately – repairing heating networks, improving healthcare buildings and restoring water infrastructure. These are essential services for communities on the frontline and those welcoming displaced people, and the EIB remains committed to helping them sustain and strengthen these efforts.”

European Union Commissioner for Enlargement Marta Kos said: “The resilience of the Ukrainian people is remarkable, and the European Union is committed to supporting its citizens as they continue to withstand Russia’s aggression. EU support is helping to keep schools and hospitals functioning, safeguarding access to clean water, and enabling the rapid construction of new shelters and emergency centres. Protecting lives, especially in areas exposed to frontline attacks, remains our highest priority.”

Deputy Prime Minister for Restoration of Ukraine and Minister for Development of Communities and Territories Oleksii Kuleba said: “Ukrainian municipalities are working under extraordinary pressure to deliver services and rebuild. This EIB financing helps them address real, everyday needs – whether repairing heating systems, modernising hospitals, building shelters or restoring water supply. We value our cooperation with the European Union, which continues to provide vital support to communities across the country.”

Sergii Marchenko, Minister of Finance of Ukraine, said: “This EIB financing provides essential support for our recovery efforts. These disbursed funds help communities restore heating, water supply, healthcare facilities and other critical social infrastructure. We highly value this EU support, which enables local authorities to advance urgent reconstruction and improve living conditions for people across Ukraine.”

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 €9.5 billion, with €7.8 billion in loan guarantees and €1.7 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 the UIF. The aim of the UIF is to mobilise €40 billion of investments for Ukraine’s recovery, reconstruction and modernisation.

The EIB in Ukraine 

The 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.