European Investment Bank to support Ukraine’s restoration with €840 mln grant

European Investment Bank (EIB) has signed a memorandum on the allocation of €840 million to implement priority projects in 2023 to restore the infrastructure of Ukraine.

Since day one of the full-scale war, the Bank has allocated €1.7 billion in emergency aid to Ukraine.

What is the problem?

Due to the war, Ukraine's economy could not meet the needs of the state budget.

"These funds were directed to the needs of the state budget and support the Ukrainian economy. Today, we are expanding our cooperation in the reconstruction of Ukraine. We will work together on a number of projects aimed at restoring municipal and transport infrastructure, improving energy efficiency, Kubrakov said.

What is the solution?

The funds provided in the document will be directed to the preparations, assessment, financing, and implementation of recovery projects. These projects relate to municipal infrastructure; public buildings, energy efficiency; water supply and drainage infrastructure; transport networks, and urban public transport.

The paper was signed during the Ukraine Recovery Conference 2023, which takes place in London.

How does it work?

Today, we are expanding our cooperation in the restoration of Ukraine. We will work together on a number of projects aimed at restoring municipal and transport infrastructure, improving energy efficiency, etc.

We appreciate the support that the Bank has already provided to Ukrainians, and we thank EIB President Werner Heuer for his cooperation and the Bank's critical role for the stability of Ukraine in wartime conditions, the Ukrainian minister emphasized.

The EIB will also finance the development of digital transformation and the strengthening of cyber security.

The memorandum provides for cooperation between Ukraine and the EIB on the use of a special EIB's EU for Ukraine Fund. It also supports:

• loans for projects in Ukraine with the support of guarantees from the European Fund for Sustainable Development Plus (EFSD+);
• implementation and application of a technical and consulting assistance package worth about €100 million.

What is known about the Ukraine Recovery Conference in London?

More than a thousand representatives from 61 countries take part in the Ukraine-related conference.

The President of the European Commission Ursula von der Leyen, the US Secretary of State Antony Blinken, the President of Ukraine Volodymyr Zelensky, and the Prime Minister of Great Britain, Rishi Sunak are among the speakers.

During the conference, the parties will discuss reforms necessary for the post-war recovery of Ukraine, the promotion of trade and investment, and the restoration of human capital.

The US has already announced that it will provide Ukraine with an additional package of financial assistance in the amount of 1.3 billion dollars for recovery after the Russian invasion. Most of the funds will be directed to the reconstruction of the country's energy system and critical infrastructure.

Also, Britain announced that it will provide Ukraine with new financial assistance in the amount of 3 billion dollars over the next three years.