EU announced a new €2.3 billion package of agreements at the Ukraine Recovery Conference: what's included
Kyiv • UNN
The European Commission announced a new financial support package for Ukraine worth €2.3 billion, which includes grants and loan guarantees. The funds will be directed towards supporting businesses, investments, urban reconstruction, energy security, and critical infrastructure.
European Commission President Ursula von der Leyen announced a new financial support package for Ukraine worth 2.3 billion euros, which includes grants and loan guarantees to support Ukraine's recovery and reconstruction efforts.
This was reported by the European Commission's press service, writes UNN.
The new package of agreements totaling 2.3 billion euros, signed with international and bilateral public financial institutions within the Ukraine Investment Framework, includes 1.8 billion euros in loan guarantees and 580 million euros in grants. This is expected to mobilize up to 10 billion euros in investments in Ukraine.
It is noted that these funds will go to:
- support for small and medium-sized businesses, including startups: 500 million euros in guarantees and grants;
- mobilization of strategic investments: 600 million euros for large-scale projects in energy, transport, and manufacturing;
- reconstruction of cities and communities: 520 million euros for municipal infrastructure in war-affected areas, including healthcare, urban mobility, and housing;
- energy security and green transition: 265 million euros for stabilizing Ukraine's energy grid, restoring renewable energy capacity, and increasing energy efficiency;
- critical infrastructure: 310 million euros for the repair and reconstruction of critical infrastructure, including housing, hospitals, and medical facilities.
Von der Leyen also announced the creation of a new European flagship fund for Ukraine's reconstruction, supported by the European Commission through the European Investment Bank, as well as France, Germany, Italy, and Poland.
The fund will have an initial capital of 220 million euros and aims to mobilize 500 million euros by 2026. Further fundraising is expected as the security situation improves.
The European Commission also announced its proposal for the fourth tranche under the first component of the Ukraine Facility - the "Ukraine Plan", which is expected in August. This fourth payment will amount to up to 3.05 billion euros.
In parallel, the European Commission today allocated 1 billion euros to Ukraine as part of the sixth tranche of the EU's macro-financial assistance package of 18.1 billion euros, which is to be fully disbursed by the end of 2025. With this payment, the total amount of lending to Ukraine by the European Commission under this instrument since the beginning of the year will reach 8 billion euros.