Source: European Investment Bank
- The EIB President is leading the EIB delegation to Ukraine on her first visit outside the EU since taking up office last year.
- Calviño stressed the EIB Group’s long-term commitment to Ukraine in talks with the government and business leaders in Kyiv.
- The projects announced under EU’s €50 billion Ukraine Facility include €420 million in investment for the public sector to restore and protect energy supplies, and for water, heating, housing and other critical infrastructure.
- The support also includes new loan and guarantees for SMEs, unlocking almost €500 million of new finance.
- The EU 112 emergency call system will be rolled out in Ukraine with EIB backing.
- A €16.5 million grant provided by the German Ministry for Economic Affairs and Climate Action to an EIB International Climate Initiative Trust Fund has been signed for renewable energy in Ukraine.
- There are plans for close cooperation to advance social housing in the country.
On her first official visit outside the European Union since taking up office a year ago, European Investment Bank (EIB) Group President Nadia Calviño is visiting Kyiv today to meet top Ukrainian officials, including President Volodymyr Zelenskyy and Prime Minister Denys Shmyhal. The objective of the visit is to agree on new financing operations for Ukraine and stress Europe’s long-term commitment to the country. President Calviño is leading the delegation that also features EIB Vice-President Teresa Czerwińska and EU Ambassador to Ukraine Katarína Mathernová.
The package – part of the European Union’s €50 billion Ukraine Facility – includes €420 million for new public-sector projects to restore and protect energy supplies, heating systems and other critical infrastructure that has been damaged since Russia’s full-scale invasion in February 2022. The EIB and the European Commission are set to finalise the approval of a €2 billion EIB contribution under the Facility.
The latest round of European funding announced today will also benefit Ukraine’s private sector, with the aim of bolstering thousands of small and medium-sized enterprises (SMEs), which form the backbone of the country’s economy. It combines a €100 million loan and guarantees aimed at unlocking around €400 million in lending to SMEs through key Ukrainian banks – including Ukreximbank, ProCredit Bank and Ukrgasbank – with which the EIB has signed agreements today.
Another element of the package is the planned rollout of the European Union’s common 112 emergency number and call system across Ukraine to enhance public safety. President Calviño visited an operating centre in Kyiv that will run the new system to mark the signing of a €40 million EIB loan for the initiative, which is complemented by a €12 million EU grant and funding from Member States under the EU for Ukraine Fund.
“This is my first official visit outside the European Union since taking up office as President of the EIB Group last year. Support for Ukraine is a top priority and that is why I am so pleased to be here to announce new major projects for SMEs, energy, water and other essential services that will help people to continue with their daily lives and support the country’s economic resilience, while also laying the foundation for a stronger Ukraine on its path to EU membership,” said EIB Group President Nadia Calviño.”
“The financing package that we have announced reflects our ongoing and unwavering commitment, since the very first day of this war, to help Ukraine recover, rebuild, and thrive despite the immense challenges it faces. This is a joint effort of Team Europe made possible through close collaboration with the European Commission and EU Member States,” added EIB Vice-President Teresa Czerwińska, who oversees the Bank’s operations in Ukraine.
“This support package, developed with the EIB, further demonstrates the European Union’s unwavering commitment to Ukraine’s recovery and reconstruction. With the Ukraine Facility, we are restoring vital infrastructure and helping businesses grow – crucial projects as Ukraine defends itself against Russian aggression. Together, we will continue to support Ukraine, working on key areas, such as energy, housing, and public safety to build a stronger and more sustainable future,” said EU Ambassador to Ukraine Katarína Mathernová.
Today, four projects worth €420 million were announced under the EU’s Ukraine Facility. They will help to restore critical infrastructure and services and ensure a stable energy supply. The projects include the €100 million “Ukraine Recovery III”, €100 million “Ukraine Water Recovery”, and the €100 million “Ukraine District Heating”, which will be channelled through Ukreximbank. These initiatives aim to ensure that millions of Ukrainians in more than 100 communities across the country have access to heating, water, hospitals, schools and housing for internally displaced people. The €120 million “Support of Ukrhydroenergo Stability and Recovery” loan to the largest hydropower generating company in Ukraine will help to restore hydropower plants and thus reinforce the Ukrainian energy system.
Deputy Prime Minister for Restoration of Ukraine — Minister for Development of Communities and Territories of Ukraine Oleksii Kuleba said: “We deeply value the strong cooperation with the European Investment Bank, in particular under the recovery programmes, which are playing, since 2014 a key role in supporting more than 100 communities across the country. We are grateful for the support to the communities that are de-occupied or close to the front line. The provision of social, medical, logistical, educational and other infrastructure is essential to ensuring our communities remains strong and resilient. Today we sign €100 million of the multi-sector Ukraine Recovery III loan for the restoration and modernization of critical infrastructure, such as heating, hospitals and housing for IDPs and we sign €100 million of Ukraine Water Recovery dedicated to water and wastewater. Our collaboration on social housing is another key component, reflecting our shared commitment to providing essential infrastructure and stability for those in need. The grant for renewable energy, which we also signed today, will play a vital role in ensuring that critical buildings, like hospitals, can continue serving the population amidst power cuts. Together, these initiatives not only accelerate our recovery but also help us build a more resilient and sustainable future for our country.”
The financing provided for the 112 call system in Ukraine will expand data centres across the country and upgrade their technological capacity, ensuring that critical services are reliable and efficient.
“Implementing and developing the 112 emergency call system has become a crucial component in enhancing public safety in Ukraine and in aligning our infrastructure to European standards. Thanks to the EIB loan and support from European partners, we will be able to improve cooperation between emergency services, particularly through the automatic detection of the caller’s geolocation. We will strengthen our ability to assist individuals with hearing and speech impairments, as well as foreign citizens. This project is about enhancing the safety of our citizens and providing timely assistance to those in need,” said Minister of Internal Affairs of Ukraine Ihor Klymenko.
The EIB is also signing a €16.5 million grant from the German government with the Ministry for Development of Communities and Territories of Ukraine to promote renewable energy. The grant comes through the EIB’s International Climate Initiative Fund and is part of the Ukraine Energy Rescue Plan announced by the EIB in October 2024.
The grant will help integrate renewable energy systems into public buildings undergoing renovation works under EIB municipal loans. This will upgrade social infrastructure and make energy more reliable, cleaner and less costly. The grant will also help to decentralise energy generation, ensuring that critical public buildings in towns and villages are less reliant on electricity supplies from large power stations, making them less vulnerable to blackouts in the event of an airstrike.
Berthold Goeke, Director-General for Climate Action, German Federal Ministry for Economic Affairs and Climate Action (BMWK) said: “Through the Renewable Energy Solutions Programme, the International Climate Initiative (IKI) is helping smaller Ukrainian communities — those most affected by the war and in urgent need — to implement climate-friendly technologies. This support enables Ukraine to reduce energy costs and modernize outdated infrastructure in public buildings, laying the foundation for a stable and renewable energy future. In this way, the German government is addressing two critical challenges in Ukraine’s energy system. First, we are supporting the development of a decentralized and resilient energy supply, particularly for essential public infrastructure such as hospitals, schools, and kindergartens. Given the ongoing Russian aggression and the destruction of central energy infrastructure, this is vital for ensuring stability and security. Second, our initiative contributes to Ukraine’s long-term energy transition by promoting renewable energy and energy efficiency measures, paving the way for a climate-neutral energy system.”
Social housing is one of the most pressing issues in Ukraine, with 10% of the country’s housing stock damaged as a result of the war. The EIB is supporting the government in drafting a new housing code and exploring the possibility of financing the construction of homes that are publicly owned.
Background information
EIB in Ukraine
The EIB Group has been supporting Ukraine’s resilience, economy and efforts to rebuild since the very first day of Russia’s full-scale invasion. In 2024, we supported projects aimed at securing Ukraine’s energy supply, repairing critical infrastructure that has been damaged, and ensuring that essential services continue to be delivered across the country. This brings the total amount of aid we have disbursed since the start of the war to over €2.2 billion. This funding has played a crucial role in ensuring that vital services continue to be delivered to people in Ukraine. For example, this year we inaugurated the water supply facility in Bucha that was rebuilt, and which provides clean water to 9 000 residents. We also opened five new schools in Vinnytsia, Dnipropetrovsk, and Ternopil Oblasts, helped build a department for children’s infectious diseases at a hospital in Zhytomyr Oblast, and significantly improved sanitation through the upgraded sewerage collector in Vinnytsia Oblast. Furthermore, our investments have helped modernise street lighting in Dnipro, benefitted the reclamation of the Hrybovychi landfill in Lviv, and helped to upgrade water infrastructure in Mykolaiv. We have also strengthened Ukraine’s transport networks to ensure resilient and sustainable mobility for businesses and residents. With our support, cities such as Lviv, Kyiv, Mykolaiv, Ivano-Frankivsk, Odesa, and Sumy have purchased new buses, trolleybuses, and trams. In addition, we have funded the reconstruction of the M01 Kyiv-Chernihiv-Novi Yarylovychi section of road that had been damaged in the war. To enhance Ukraine’s energy resilience, we have launched the Energy Rescue Plan, securing €600 million in EU-backed financing, including €86 million to build anti-drone shelters to protect critical electricity transmission infrastructure. These measures are crucial to maintaining stable power supply across the country amid ongoing challenges. In 2024, we signed over €250 million in new investment for projects to further enhance social infrastructure and support businesses that are the backbone of Ukraine’s economy.
The EU for Ukraine Fund (EU4U) was established in 2023 as part of a larger EU for Ukraine initiative. The fund aims to accelerate EIB Global’s support for Ukraine’s most urgent infrastructure needs and help sustain its economy. The Fund supports both public and private sector projects to rebuild critical municipal infrastructure and improve access to finance for entrepreneurs.
The International Climate Initiative (IKI) Fund was established in 2019 in partnership with the government of Germany, with the aim of catalysing investment for ambitious climate change mitigation and adaptation projects in developing and emerging countries. The IKI Fund seeks to do this by providing investment grants, financial instruments and technical assistance to public and private sector beneficiaries, as well as advisory services to central banks and financial institutions.