EIB and EU partners expand financial aid to sustain Ukrainian businesses and secure winter energy supply

EIB and EU partners expand financial aid to sustain Ukrainian businesses and secure winter energy supply

(IN BRIEF) The European Investment Bank (EIB) has released €100 million to support Ukraine’s wartime resilience, focusing on economic stability and municipal heating infrastructure. Of this, €70 million will go to Ukrgasbank to provide long-term loans for businesses and promote energy efficiency, while €30 million — divided between Ukrgasbank and Ukreximbank — will help repair and modernize district heating systems, ensuring reliable heat supply during the winter. Backed by the EU for Ukraine Fund and the Ukraine Investment Framework, the financing strengthens Ukraine’s energy security and private sector resilience. EIB Vice-President Teresa Czerwińska and European Commissioner Marta Kos reaffirmed the EU’s continued commitment to Ukraine’s recovery and reconstruction, while Ukrainian bank leaders highlighted the impact on sustainability and critical infrastructure. The initiative complements ongoing EIB and EU support, including assistance to Naftogaz, forming part of a broader effort to fortify Ukraine’s energy and economic systems amid the war.

(PRESS RELEASE) LUXEMBOURG, 7-Nov-2025 — /EuropaWire/ — The European Investment Bank (EIB) has disbursed €100 million to bolster Ukraine’s economic resilience and sustain vital heating services during wartime. Backed by the EU for Ukraine Fund and the Ukraine Investment Framework, the financing reaffirms the European Union’s long-term commitment to Ukraine’s recovery, helping both local businesses and municipalities maintain critical operations amid continued Russian aggression.

Of the total amount, €70 million has been allocated to Ukrgasbank to expand access to long-term loans for micro, small, and medium-sized enterprises (MSMEs) and mid-cap companies. This funding, part of the €400 million Ukraine Economic Resilience Facility Lending Envelope, aims to protect jobs, ensure business continuity, and support Ukraine’s transition toward a greener economy by encouraging energy efficiency and carbon reduction investments. Through this mechanism, Ukrainian businesses will receive financing at more favourable terms, improving their ability to operate and invest despite the ongoing conflict.

The remaining €30 million, split equally between Ukrgasbank and Ukreximbank, represents the first disbursements of two larger EIB district heating loans (€50 million and €100 million respectively). These funds will support the rehabilitation and modernization of Ukraine’s municipal district heating infrastructure, enabling communities to repair war-damaged systems, improve energy efficiency in public buildings, and deploy renewable energy solutions. This initiative will help local authorities secure reliable heat supply for homes, schools, and hospitals, reinforcing community resilience and energy independence.

EIB Vice-President Teresa Czerwińska, responsible for the bank’s operations in Ukraine, underscored the urgency of the support: “This funding ensures that help reaches Ukrainian municipalities and businesses at a crucial time. It safeguards essential public services through the winter while keeping local economies active and resilient.”

Echoing this sentiment, Marta Kos, European Commissioner for Enlargement, emphasized the EU’s continued solidarity: “This marks the fourth winter in which Russia has sought to deprive Ukrainians of warmth and energy. Through coordinated EU support, we are rebuilding a stronger, more efficient, and resilient energy system to keep communities heated and secure.”

Ukrainian financial institutions welcomed the funding as vital to reconstruction. Rodion Morozov, Acting Chairperson of Ukrgasbank, noted that the financing enables sustainable recovery projects focused on district heating and energy efficiency. Viktor Ponomarenko, Chairman of Ukreximbank, added that the support “modernizes critical infrastructure and strengthens heat supply reliability under the severe conditions of wartime.”

This latest EIB disbursement complements earlier EU-backed initiatives, including financing provided to Naftogaz Ukraine to replenish gas reserves ahead of winter. Together, these coordinated efforts represent a unified Team Europe approach, fortifying Ukraine’s energy resilience, protecting jobs, and supporting the nation’s ongoing economic and humanitarian stability.

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.

Media contact:
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SOURCE: European Investment Bank