European Commission and EIB Group announce new financing package of over €600 million to support Ukraine’s recovery

This article is published in association with European Investment Bank.

• European Commission extends the EU guarantee to enable over €450 million in EIB Group financing for Ukraine.
• Fresh financing also includes around €150 million in EU grants and technical assistance.
• Initiative is part of EU Ukraine Facility to support country’s reconstruction and EU integration.

The European Commission and the European Investment Bank (EIB) Group today announced a new financing package of more than €600 million to support urgent reconstruction projects in Ukraine.

The Commission is extending the European Union guarantee to the EIB Group to enable over €450 million in EIB Group financing for further recovery efforts in Ukraine. In addition, the package includes around €150 million in complementary EU grants and technical assistance.

The EIB financing supported by the EU guarantee will target sectors essential to Ukraine’s economy and daily life, such as roads, railways, power grids and energy efficiency for homes and public infrastructure. Support will also extend to urban mobility and education facilities, helping maintain essential services while advancing long-term recovery and reforms.

“Today’s announcement reflects the strength of the EU’s partnership with Ukraine,” said EIB Vice-President Karl Nehammer. “We are scaling up our support to deliver concrete investments where they are needed most – from energy security to transport and housing. We remain committed to supporting Ukraine’s recovery and its path towards European integration.”

The EU guarantee tops up €2 billion made available to the EIB Group in 2025 under the “Ukraine Investment Framework”, which is part of the EU’s €50 billion “Ukraine Facility” designed to mobilise public and private investment for the country. Together, they expand the EIB Group’s capacity to deliver financing in support of Ukraine’s reconstruction priorities.

The announcement was made during an EU–Ukraine Business Summit in Brussels.

“Now is a good time to invest in Ukraine,” said European Commissioner for Enlargement Marta Kos. “It is becoming one of the most strategic investment destinations in Europe. Innovative, full of potential, and ever more central to Europe’s future. Cooperations between EU and Ukrainian companies also lay the foundation for more European sovereignty in critical technology sectors.”

The joint initiative reflects a “Team Europe” approach that brings together EU institutions to mobilise investment, safeguard essential services and support Ukraine in building a more resilient and sustainable future.

“These additional EU guarantees are of great importance, particularly for supporting public sector projects and the recovery of critical infrastructure and the energy sector,” said Ukrainian Minister of Economy, Environment and Agriculture Oleksii Sobolev. “They ensure that one of our key investment partners, the EIB, can expand financing for urgent projects across the country. We are grateful to our European partners for this new package of financial support and look forward to its swift implementation, which is essential for addressing urgent recovery needs.”

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 Ukraine Investment Framework is part of the Ukraine Facility designed to attract public and private investments for the recovery and reconstruction of Ukraine. It is implemented in indirect management by European financial institutions and multilateral financial institutions. These include the European Investment Bank Group, European Bank for Reconstruction and Development, International Finance Corporation, Council of Europe Development Bank, and bilateral financial institutions such as Member States’ development banks and export credit agencies. Through these institutions, the Ukraine Investment Framework provides risk-coverage to unlock public and private investments in Ukraine already now. It can also provide investment grants and technical assistance to make these investments possible.

The EIB in Ukraine

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