EIB and Ukraine Forge Strategic Partnership for Reconstruction and Growth

EIB and Ukraine Forge Strategic Partnership for Reconstruction and Growth

(IN BRIEF) The European Investment Bank (EIB) and the Government of Ukraine have solidified a strategic collaboration to bolster Ukraine’s reconstruction, recovery, and integration with the EU. This partnership, marked by a new memorandum of understanding (MoU), pledges €560 million for ongoing projects this year, emphasizing critical sectors like housing, energy, and transportation infrastructure. Backed by the EU’s €50 billion Ukraine Facility and €100 million from the EIB, the agreement prioritizes public and private initiatives, including support for small and medium businesses. Key highlights include rapid implementation of EIB projects in Ukraine, with access to €500 million in loan funds and €60 million in grants in 2024, and an envelope of at least €2 billion from the Ukraine Facility for vital public sector projects. Additionally, enhanced advisory services and private sector support aim to foster sustainable economic growth and resilience. Signed at the 2024 Spring Meetings in Washington, the MoU underscores both parties’ commitment to accelerating investment for the benefit of the Ukrainian people and their path toward EU membership.

(PRESS RELEASE) LUXEMBOURG, 19-Apr-2024 — /EuropaWire/ — The European Investment Bank (EIB), the lending arm of the European Union, and the Government of Ukraine have agreed on a strategic cooperation framework supporting Ukraine’s reconstruction, recovery, and EU integration efforts. This reinforced partnership places future investments within critical public and private sector initiatives that will be supported by funds from the EIB’s EU for Ukraine Fund and the European Union’s €50 billion Ukraine Facility, in which the EIB plays a key implementing role.

The memorandum signed today calls for the rapid implementation of ongoing EIB projects in Ukraine, with the country having access to €500 million in EIB loan funds and €60 million in EU grant funds in 2024. It outlines an envelope of at least €2 billion from the Ukraine Facility, which the EIB is prepared to invest in critical public sector projects such as housing and public building renovation, municipal infrastructure, energy, roads, railways, healthcare and civil protection. These include the modernisation of key export routes and railway lines, enhancements in hydroelectric and renewable energy production, and the strengthening of Ukraine’s national electricity grid and healthcare facilities.

The memorandum also highlights the EIB’s enhanced support for private sector growth, including for funding and risk-sharing instruments such as partial portfolio guarantees. This will enable local financial intermediaries to provide vital access to finance for local small and medium businesses (SMEs) on favourable terms.

Additionally, the agreement outlines stronger advisory support for Ukraine by opening up the highly-rated advisory services programme JASPERS (Joint Assistance to Support Projects in European Regions) to help prepare significant investments and improve capabilities to meet EU standards.

The memorandum was signed by EIB President Nadia Calviño and Ukrainian Prime Minister Denys Shmyhal at the Spring Meetings 2024 in Washington, with EU Commissioner Valdis Dombrovskis witnessing and endorsing the agreement during the signing ceremony.

EIB President Nadia Calviño said: “Together with Prime Minister Denys Shmyhal, we agreed to enhance our cooperation to facilitate and speed up the deployment of EU financial support and investment in projects on the ground for the benefit of the Ukrainian people, including essential energy infrastructure, roads, railways, hospitals, housing and civil protection initiatives. The European Union’s €50 billion Ukraine Facility and a dedicated €100 million envelope for advisory services will enable us to intensify our support to the country in the path towards EU membership.”

Ukrainian Prime Minister Denys Shmyhal said: “We are grateful for the European Investment Bank’s steadfast and continuous support. Today’s memorandum confirms our commitment to accelerate work on current projects and also emphasises our focus on preparing for new EIB investments in critical public and private initiatives that will be closely aligned with our strategic needs and the Ukraine Facility. It is a key factor to build a resilient and self-sufficient economy. All these projects and this memorandum will significantly facilitate Ukraine’s rapid recovery and bring us closer to the European Union.”

European Commission Executive Vice-President for an Economy that Works for People Valdis Dombrovskis said: “Today’s agreement between the EIB and Ukraine could not have come at a better time. It will accelerate the EU’s work to get vital investments into Ukraine, now in the third year of battling Russia’s brutal aggression. It will make it easier to support the country’s efforts to maintain essential services, repair war-damaged infrastructure and modernise its export routes. It will also scale up EU support for private initiatives and for smaller local businesses, helping Ukraine’s economy to grow. These efforts will be supported by the EU’s €50 billion Ukraine Facility through to 2027; proof of the EU’s longstanding commitment to support Ukraine at a time of its greatest need.”

Background information 

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 swift relief, disbursing €2 billion of financing for emergency repairs to the country’s ravaged infrastructure. With a portfolio of signed projects valued at €7.3 billion, the EIB has consolidated its role as the key investment partner to Ukraine, supporting municipal infrastructure, energy, transport and small businesses, all with the goal of improving daily life, boosting economic growth, and facilitating economic and social resilience.

Through its EU for Ukraine (EU4U) Initiative, coupled with its key role in implementing the European Union’s €50 billion 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, EU Member States and international partners.

For more information about the EIB Group at the WBG/IMF Spring Meetings, please visit: The EIB at the 2024 WB Group-IMF Spring Meetings.

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About the EIB Group

The European Investment Bank Group (comprised of the European Investment Bank and the European Investment Fund) is the financial arm of the European Union. We finance sound investment, contributing to EU policy goals within and outside the European Union.

EIB Global is the EIB Group’s specialised arm dedicated to operations outside the European Union, and a key partner of the EU’s Global Gateway strategy. We aim to support at least €100 billion of investment by the end of 2027, around one-third of the overall target of Global Gateway. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local communities, companies and institutions through our offices across the world.

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SOURCE: European Investment Bank