EU's Ukraine Facility approves rules for investment: should help mobilize up to EUR 40 billion
Kyiv • UNN
The Steering Board of the Ukraine Investment Framework has agreed on the terms of operation of the investment component of the EU program for Ukraine, aimed at mobilizing up to EUR 40 billion of public and private investment for the recovery and development of Ukraine's economy.
The Governing Board of the Ukraine Investment Framework has agreed on the terms of operation of the investment component of the Ukraine Facility, the Ministry of Economy of Ukraine reported on Monday, UNN reports.
Details
The Ukraine Investment Framework (UIF) is the second component of the Ukraine Facility and, as noted, aims to mobilize investment for Ukraine's economic recovery and development.
The Steering Board of the Ukraine Investment Framework (UIF) at its first meeting approved the rules of procedure and strategic guidelines for the investment component of the EU's Ukraine Facility program.
"The signing of the first investment programs under the UIF is scheduled for the Ukraine Recovery Conference to be held on June 11-12, 2024 in Berlin," the Ministry said.
The Ukraine Investment Framework will give businesses access to financing from international financial organizations and Ukrainian banks, which will be supported by the EU. This can include guarantees, mixed financing from loans and grants, as well as technical assistance in preparing applications and finalizing projects. To achieve the goals of the Ukraine Facility, both existing programs will be expanded and new ones will be launched. The first of these will be presented at the Ukraine Recovery Conference in June this year
Under the Ukraine Facility, the EU will reportedly provide €6.97 billion to finance the UIF, of which €5.46 billion will be allocated to the establishment of the Ukraine Guarantee and €1.5 billion will be earmarked for blended finance operations, as well as grants and technical assistance. Support under the UIF will be available for both private and public investment projects.
Taking into account the expanded financing of the Ukrainian Guarantee, the total volume of the Ukraine Investment Framework is said to be EUR 9.3 billion.
"The implementation of the Ukraine Investment Framework is expected to attract up to EUR 40 billion in public and private investment over the next few years," the Ministry of Economy said.
The UIF will be managed by the Ukraine Investment Framework Steering Committee, a special body established to strategically and operationally manage the program's resources.
The Steering Board of the Ukraine Investment Framework includes representatives of the European Commission and each EU member state. The Verkhovna Rada of Ukraine and the Ukrainian government may participate in the work of the Board as observers.
In the future, the Ukraine Investment Framework Steering Board will approve transactions under the UIF on a project-by-project basis (guarantees and financing) or on a portfolio basis, and ensure that they are in line with the Ukraine Facility Implementation Plan.
"The adoption of the rules of procedure and strategic guidelines of the Ukraine Investment Framework will allow us to launch financing under the Ukraine Investment Framework this year," the Ministry of Economy noted.