On 10 February, the European Investment Bank announced a new package for Ukraine. Part of the European Union’s €50 billion Ukraine Facility, the package includes €420 million for new public-sector projects to restore and protect energy supplies, heating systems and other critical infrastructure that has been damaged since Russia’s full-scale invasion in February 2022.
The package was announced during EIB’s Group President Nadia Calviño visit to Kyiv to meet top Ukrainian officials, including President Volodymyr Zelenskyy and Prime Minister Denys Shmyhal.
The projects include the €100 million ‘Ukraine Recovery III’, the €100 million ‘Ukraine Water Recovery’, and the €100 million ‘Ukraine District Heating’, which will be channelled through Ukreximbank. These initiatives aim to ensure that millions of Ukrainians in more than 100 communities across the country have access to heating, water, hospitals, schools and housing for internally displaced people. The €120 million ‘Support of Ukrhydroenergo Stability and Recovery’ loan to the largest hydropower generating company in Ukraine will help to restore hydropower plants and thus reinforce the Ukrainian energy system.
The latest round of European funding will also benefit Ukraine’s small and medium-sized enterprises (SMEs). It combines a €100 million loan and guarantees aimed at unlocking around €400 million in lending to SMEs through key Ukrainian banks – including Ukreximbank, ProCredit Bank and Ukrgasbank.
Another element of the package is the planned rollout of the European Union’s common 112 emergency number and call system across Ukraine to enhance public safety. President Calviño visited an operating centre in Kyiv that will run the new system to mark the signing of a €40 million EIB loan for the initiative, which is complemented by a €12 million EU grant and funding from Member States under the EU for Ukraine Fund.
The EIB is also signing a €16.5 million grant from the German government with the Ministry for Development of Communities and Territories of Ukraine to promote renewable energy.
The grant will help integrate renewable energy systems into public buildings and decentralise energy generation, ensuring that critical public buildings in towns and villages are less reliant on electricity supplies from large power stations, making them less vulnerable to blackouts in the event of an airstrike.
Since the start of Russia’s full-scale invasion in 2022, the EIB has disbursed over €2.2 billion supporting Ukraine’s resilience, economy and efforts to rebuild.
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