EIB Group steps up support for Ukraine with over €470 million for housing, connectivity and private sector growth

This article is published in association with European Investment Bank.

• The new €470 million package combines loans, grants, guarantees and strategic partnerships to accelerate Ukraine’s recovery and strengthen its economic resilience.
• The package boosts private investment through an €80 million EIB commitment negotiated by EIB to the European Flagship Fund for the Reconstruction of Ukraine and new EU-backed guarantees for Ukrainian businesses.
• The package includes €96 million to improve roads, bridges and border infrastructure, as well as the launch of the Security and Connectivity Initiative to help shape future investments in transport, energy and digital networks.
• A €50 million EIB loan, complemented by an EU grant, will support the construction of much-needed social housing across Ukraine.
• With these latest commitments, EIB Group support to Ukraine reaches €4.5 billion since the start of Russia’s full-scale invasion in 2022.

The European Investment Bank (EIB) Group is stepping up support for Ukraine with over €470 million in new financing to strengthen private-sector investment and critical infrastructure including housing and roads, bridges and border infrastructure. The package was announced today at a “Ukraine Recovery Conference” in Gdańsk, Poland in cooperation with the European Commission and the Ukrainian government. Most of the financing takes the form of EIB loans backed by European Union guarantees.

A major component is an €80 million to be committed by the EIB to the “European Flagship Fund for the Reconstruction of Ukraine” – an EU-backed equity fund being developed with the Commission and several Member States that is projected to mobilise more than €1 billion in public and private equity capital. The package also includes a €100 million loan to Ukreximbank as well as EU-backed guarantees for PrivatBank and Ukrgasbank that aim to unlock around €500 million in financing for Ukrainian small and medium-sized enterprises (SMEs), supporting green investments, energy efficiency and businesses affected by the war with Russia or operating near the conflict zones.

The package also features financing for critical infrastructure through the Ministry for Development of Communities and Territories of Ukraine. It includes a €50 million EIB loan, complemented by a €50 million EU grant, for the construction of social housing. An additional €25 million EU grant to the ministry will support the recovery and modernisation of Ukraine’s water sector. The new financing also includes a €96 million loan to repair roads, bridges and border infrastructure, strengthening Ukraine’s connectivity with the EU.

“Every element of the support announced today comes together to help Ukraine rebuild faster and stronger,” said EIB Vice-President Karl Nehammer, who oversees the Bank’s operations in Ukraine. “From housing and infrastructure to private investment and stronger project delivery, this package reflects the EIB’s long-term commitment to Ukraine and its European future.”

“Ukraine is not waiting for peace to start rebuilding. It is repairing roads, restoring water systems, building homes and keeping businesses alive while the war continues,” said European Commissioner for Enlargement Marta Kos. “Today’s agreements with the EIB Group will help Ukraine do more of this. And move closer to the European Union at the same time.”

“These agreements are investments in Ukraine’s resilience, recovery and future integration with the European Union. Together with the European Investment Bank and the European Commission, we are rebuilding critical infrastructure, expanding social housing, restoring water systems, strengthening connectivity with Europe and creating new opportunities for Ukrainian businesses,” said Ukrainian Deputy Prime Minister for Restoration of Ukraine – Minister for Development of Communities and Territories of Ukraine Oleksii Kuleba. “Every project signed today brings us closer to a modern, resilient and competitive Ukraine. We highly value the EIB’s continued leadership and long-term commitment to Ukraine. This support helps communities recover today while laying the foundation for sustainable growth and reconstruction for decades to come.”

Beyond financing, the package includes new initiatives developed with the Commission, the Ukrainian government and partner international financial institutions to strengthen reconstruction efforts. These include a “Security and Connectivity Initiative”, which will guide future investments and advisory support in transport, energy and digital infrastructure, a “GROUND” report on improving project preparation and implementation and a joint paper by the EIB and the European Bank for Reconstruction and Development (EBRD) outlining priorities for Ukraine’s energy resilience, recovery and integration with the EU energy market.

More information on the projects signed and announced today:

• Mobilising investment and partnerships for Ukraine’s private sector

The European Flagship Fund for the Reconstruction of Ukraine will invest in Ukrainian companies and strategic projects in renewable energy, transport, digital infrastructure, manufacturing and other sectors driving reconstruction, innovation, economic growth and EU integration. Managed by Amber Infrastructure and Dragon Capital, the fund represents a major step in attracting institutional and private investments for Ukraine’s recovery.

In addition to seeking to commit €80 million to the fund, the EIB is seeking to expand financing for Ukrainian SMEs and mid-sized corporates – with a particular focus on green investments including energy efficiency – through the €100 million loan to Ukreximbank.  

In parallel, the EU-backed guarantees to PrivatBank and Ukrgasbank aim to unlock up to €500 million in financing for nearly 10,000 Ukrainian SMEs. The focus is on businesses led by veterans, women and young entrepreneurs as well as those affected by the war or operating near the conflict zones.

• Supporting Ukraine’s social housing and other essential infrastructure

The €50 million EIB loan and €50 million EU grant are for new social housing in the cities of Kremenchuk, Kropyvnytskyi, Lviv, Mykolaiv and Zhytomyr. The financing is being complemented by technical assistance to support implementation of the programme. 

The programme will provide quality housing for internally displaced people, one-parent households, young people entering adulthood, local employees and Ukrainians returning after the war. The first phase is expected to deliver between 1,000 and 1,600 housing units and lay the foundation for future social-housing programmes across Ukraine.

This marks the first step in broader EIB support to help address a housing crisis in Ukraine. It will be followed by an “Energy Efficiency Restoration of Multi-Apartment Buildings Programme”, which is being finalised for implementation by the Ukraine Energy Efficiency Fund.

The €25 million EU grant for the Ukrainian water sector will accelerate a €100 million EIB initiative called the “Ukraine Water Recovery” project, helping restore water supply and wastewater treatment systems across the country.

• Strengthening transport infrastructure and EU connectivity

The €96 million EIB loan to repair roads, bridges and border infrastructure is complemented by technical assistance toUkraine’s Agency for Restoration. The investments will strengthen the EU’s “Solidarity Lanes”, facilitating trade with Ukraine and deepening economic ties with the EU.

The EIB, the Commission and the Ukrainian government signed a Memorandum of Understanding establishing the Security and Connectivity Initiative, which provides a framework to accelerate Ukraine’s connectivity with the EU. The goal is to define strategic priorities and guide future investments and advisory support in transport, energy and digital infrastructure, helping ensure secure and efficient connections for the movement of goods, people, energy and data. The Initiative’s first action will be the preparation of a new “Western Border Infrastructure of Ukraine” operation to modernise border crossing points connecting Ukraine with the EU and Moldova.

• Supporting a resilient energy sector

The EIB and the EBRD, together with the Energy Community Secretariat, which helps integrate neighbouring countries into the EU energy market, today presented a joint paper outlining priorities for strengthening the resilience, recovery and long-term transformation of Ukraine’s energy sector. The paper calls for coordinated investments alongside reforms to strengthen energy security, modernise infrastructure, attract private investment and advance Ukraine’s integration into the EU energy market. It also affirms the commitment of both banks to continue coordinating investments and policy support for Ukraine’s energy sector. It aims to enhance joint energy operations origination and to maximize Banks’ support to Ukraine energy sector.

• Strengthening Ukraine’s implementation capacity for reconstruction

The EIB worked with the Ukrainian government, the Commission and partner international financial institutions (IFIs), including the Council of Europe Development Bank (CEB), the EBRD and the World Bank, on the GROUND initiative – Governance Reform for the Operationalisation of Ukraine’s Reconstruction and Development. The initiative was presented at the high-level Steering Committee meeting of the Ukraine Donor Platform, held on the margins of the Ukraine Recovery Conference in Gdańsk. The first phase of the initiative has helped identify ways to strengthen Ukraine’s capacity to deliver reconstruction projects more effectively. Key areas include improving government coordination, project implementation, delivery arrangements and workforce development.

Background information:

EIB Group in Ukraine

Present in Ukraine since 2007, the EIB Group has significantly stepped up its financial support for the country’s resilience and modernisation following Russia’s full-scale invasion in 2022. Since then, EIB financing in support of Ukraine has reached €4.5 billion. Through its EU for Ukraine (EU4U) Initiative, coupled with its key role in implementing the EU’s €50 billion Ukraine Facility, the EIB is 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, EU Member States and international partners.