European Investment Bank approves €1.59 billion of EU financial assistance for Ukraine
The European Investment Bank (EIB), the EU bank, is providing €1.59 billion, supported by guarantees from the EU budget, to help Ukraine repair the most essential damaged infrastructure and resume critically important projects addressing the urgent needs of Ukrainian people.
This is the second package of support for Ukraine under the EIB Ukraine solidarity urgent response developed in close cooperation with the European Commission. It follows an emergency support package of €668 million fully disbursed within a month of the war’s beginning. Like the first one, this new financing is offered at favourable terms including long tenors.
The package was agreed by the EIB Board of Directors yesterday; €1.05 billion will be made available immediately.
The financing will help essential services to resume and get the most critical infrastructure up and running again, strengthen the country’s resilience and maintain economic stability. It consists of two blocks of intervention:
- Immediate financial assistance totalling €1.05 billion. This will consist of upfront disbursements under eight existing finance contracts. It will help the Ukrainian government to cover priority short-term financing needs, provide support to strategic state-owned companies, ensure urgent repairs of damaged infrastructure, resume the provision of disrupted municipal services, and support urgent energy and energy efficiency measures in preparation for the cold season.
- Resuming implementation of EIB-financed projects in Ukraine totalling €540 million where possible, excluding areas of active hostilities and territories not controlled by the Ukrainian government. The selected projects will cover energy, energy efficiency, roads, transport, education and infrastructure, as well as reconstruction and recovery programmes. The exact timing of these disbursements will depend on the state of advancement of underlying projects.
Valdis Dombrovskis, European Commission Executive Vice-President for an Economy that Works for People, said: “This EIB support will keep strategic public sector companies financially viable and able to carry out urgent repairs of critical infrastructure, resume the provision of essential services and address other immediate needs of the Ukrainian people, including those displaced by Russia’s war. The European Commission will keep working with EU Member States and our international partners to support Ukraine on every level — for as long as it takes.”
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