The European Commission and the EIB have signed a guarantee for investments in Ukraine’s recovery. What does the agreement provide for?
6 March 15:50
The European Commission and the European Investment Bank Group have signed a guarantee agreement under the Ukraine Facility program to support Ukraine’s recovery and resilience, which will allow the EIB to invest €2 billion in urgent recovery and reconstruction efforts in Ukraine.
This is reported on the website of the Ministry of Economy, Komersant ukrainskyi reports.
It is noted that the funds will support public sector activities in key sectors.
The investments will be aimed at strengthening Ukraine’s energy networks, including power grids, expanding hydropower and renewable energy production, and improving energy efficiency.
The money will also be used to modernize railways, improve urban public transport and transport links, including the EU-Ukraine Solidarity Roads and border crossings on key export routes.
In addition, the funding will help restore municipal infrastructure such as water and heating systems, public lighting, as well as schools, hospitals and higher education institutions, the document says.
This initiative is being implemented by the EIB Advisory Service through the EUR 20 million JASPERS advisory service package for Ukraine, which is co-financed by the European Commission and the EIB’s EU for Ukraine advisory program from 2024.
This funding is part of the EU’s Ukraine Facility program for Ukraine, which is worth €50 billion for the period 2024-2027.
According to Yulia Svyrydenko, First Vice Prime Minister of Ukraine and Minister of Economy of Ukraine, the European Union and its institutions, including the EIB, remain reliable partners in Ukraine’s recovery.
“We are accelerating investment projects that meet our most urgent strategic needs, ensuring rapid reconstruction and modernization. Every project we implement brings Ukraine closer to the EU, strengthening our resilience and integration into the European family,” she said.
EIB President Nadia Calvigno emphasized that Ukraine’s security is the security of the European Union.
“We support Ukraine. Today, we reaffirm this commitment by signing agreements with the European Commission and the Government of Ukraine to strengthen our support. This will allow us to make critical investments to rebuild Ukraine’s key infrastructure and public services, strengthening the country’s resilience and its path to EU integration,” the official said.
What is the Ukraine Facility?
TheUkraine Facility is the EU’s financial assistance program for Ukraine. In the period from 2024 to 2027, the EU will allocate €50 billion to finance the state budget, stimulate investment and provide technical support for the program.
Last year, the EIB supported projects aimed at securing Ukraine’s energy supply, restoring critical infrastructure, and ensuring the uninterrupted provision of essential services across the country.
on February 24, in Kyiv, the European Commission offered Ukraine a new support package to ensure the security of the energy system and full integration into the European energy market.
In February, Ukraine and the European Investment Bank signed an agreement to provide €16.5 million for the restoration of energy and critical infrastructure.
