The European Union has signed a series of agreements totaling €2.3 billion aimed at supporting Ukraine. These agreements include the provision of guarantees and grants, as well as enabling the attraction of additional investments of up to €10 billion for the country’s recovery. According to European Commission President Ursula von der Leyen, the main focus is on financing energy and critical technologies, as well as involving the private sector in these programs.
This is reported by Business • Media
Launch of the Global Reconstruction Fund and New Financial Initiatives
It was also announced that a Global Reconstruction and Renovation Fund for Ukraine has been established with an initial capital of €220 million. The goal is to mobilize at least €500 million for investment in enterprises that will contribute to the country’s recovery by 2026. Both public and private investors will participate in the financing.
“The European Union has signed agreements worth €2.3 billion to assist Ukraine, which include guarantees and grants, and will allow for the attraction of up to €10 billion in investments,” said Ursula von der Leyen.
The European Investment Bank (EIB) group, along with the European Commission, announced a new financial aid package of €600 million. Most of this support is provided in the form of EIB loans, which are secured by EU guarantees. The funding is concentrated on developing energy and transport infrastructure, as well as supporting small and medium-sized enterprises and the private sector.
International Funds and Support for Ukrainian Regions
The EIB, the European Bank for Reconstruction and Development (EBRD), and the European Commission have launched a new initiative called Ukraine FIRST (Ukraine Facility for Infrastructure Reconstruction) with a budget of €30 million, aimed at preparing infrastructure projects. In addition, the EIB announced the expansion of grant programs to strengthen the energy resilience of communities, with approximately €40 million allocated for these purposes.
Joint efforts by the EIB and the German government play an important role in supporting Ukrainian regions dependent on coal. In particular, under the JTR-U program of the IKI Fund, the German government will make an additional contribution of €19.6 million.
Separately, the ministries of economy of Ukraine and Germany, the Minister of Foreign Affairs of Norway, the European Commission, and the German Society for International Cooperation signed a five-party statement regarding a new phase of the economic development support program for Ukraine, Step in 2 EU. The additional funding for this initiative amounts to €25 million, increasing the total budget of the program to €41.5 million. These funds will enhance support for small and medium-sized enterprises, continue the digitalization of business services, and expand training programs for local economic institutions. The aim of the program is to prepare Ukrainian businesses for operating in the EU market. Step in 2 EU is a logical continuation of the EU4Business and ReACT4UA initiatives.