EIB with European Commission signed agreements to attract more than 1 billion euros for business and restore critical infrastructure in Ukraine
Kyiv • UNN
The European Investment Bank Group, in cooperation with the European Commission and the Government of Ukraine, signed agreements worth more than €1 billion to support Ukrainian businesses, restore critical infrastructure, and promote a green transition, among other initiatives, at the Ukraine Recovery Conference in Berlin.
At the Ukraine Recovery Conference in Berlin, the European Investment Bank (EIB) group, in cooperation with the European Commission and the Ukrainian government, signed a number of important projects and partnership agreements aimed at supporting Ukraine's economic and social resilience, the Ministry of Economy reported, UNN reported.
Details
The President of the EIB Group, Nadia Calvigno, has reportedly announced the signing of new financial agreements under two EU guarantee programs for Ukrainian banks. They envisage over €1 billion in loans to support small and medium-sized enterprises (SMEs) in Ukraine.
"New financing from the EIB and the European Commission, signed in Berlin, will make it possible to attract more than €1 billion for Ukrainian businesses and restore local critical infrastructure," the Ministry of Economy said.
In particular, the following projects were signed and announced:
Over EUR 1 billion in loans to Ukrainian SMEs. This guarantee financing is intended for Ukrainian banks and other financial intermediaries to improve access to finance for SMEs.
Rebuilding critical infrastructure in war-affected cities thanks to €100 million investment. The EIB has provided €100 million to the Ministry of Communities, Territories and Infrastructure of Ukraine to support war-affected Ukrainian cities in restoring critical infrastructure.
Launch of the EU's flagship advisory services program (JASPERS) in Ukraine. Together with the European Commission, the EIB announced the signing of a new EUR 20 million agreement to deploy advisory assistance to Ukraine under the JASPERS (Joint Assistance to Support Projects in European Regions) program. A cooperation framework outlining the implementation of the program was also signed with the Ukrainian government.
Facilitating Ukraine's green transition. The EIB and Naftogaz, Ukraine's state-owned oil and gas company, have signed a cooperation agreement to provide a €400,000 technical assistance grant under the EIB's EU for Ukraine advisory program. This strategy will focus on decarbonizing energy supply and consumption, reducing greenhouse gas emissions, implementing energy efficiency solutions, increasing renewable energy production, and developing low-carbon businesses to reduce emissions associated with energy use by consumers. The German government and the EIB will provide a €20 million grant for the "Renewable Energy Solutions Program" to develop renewable energy and improve energy efficiency in Ukrainian municipalities, complementing existing EIB framework loans.
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Promote local currency financing for SMEs and mid-cap companies. The EIB and Citibank Ukraine announced their intention to cooperate on the establishment of a local currency financing program and to consider a revolving credit line of USD 50 to 100 million in Ukrainian hryvnia. This initiative aims to increase the availability of local currency loans for Ukrainian businesses affected by the war.
Partnerships with international alliances. The EIB has joined several alliances launched at the Ukraine Recovery Conference in Berlin, such as the SME Alliance, the Coalition for Sustainable Municipalities, the Alliance for Gender Responsive and Inclusive Recovery, and the Skilled Workforce Alliance for Ukraine. These partnerships are aimed at supporting private sector growth, promoting gender equality and upskilling Ukrainians to rebuild their country, underscoring the EIB's commitment to these key areas.
As indicated, in particular, it is assumed:
- New funding to restore social municipal infrastructure and basic services, such as schools, kindergartens, hospitals, and local transportation in Ukrainian cities.
- It is planned to introduce the European emergency system 112, reconstruct the railway and border crossing points with EU member states, and modernize the Kyiv metro.
- Provision of EU guarantees to Ukrainian banks to attract over EUR 1 billion in loans to support small and medium-sized enterprises.
- Finalize the development of a new pan-European export credit guarantee facility worth EUR 300 million to support EU small and medium-sized enterprises exporting to Ukraine.
- Expanding the EU's JASPERS advisory program to launch and accelerate the implementation of projects on the ground.
