In spite of the difficult security situation, the European Commission and European Investment Bank (EIB) continue financing the recovery and reconstruction projects in Ukraine.

According to the Ministry of Economy, at the EIB Group Forum in Luxembourg, they signed a guarantee agreement that will allow the EIB to invest at least EUR 2 billion to this end in the framework of Ukraine Facility.

The funds will be used to strengthen the Ukrainian energy infrastructure, namely, to support the development of hydropower, increase the renewable energy generation, and enhance the energy efficieancy.

What is more, the funds will be allocated to renew the railway infrastructure, develop the urban public transport, and support the Solidarity Lanes initiative aimed at improving the transportation between Ukraine and the EU.

The funding will also facilitate the urban infrastructure recovery, in particular, water supply and district heating systems, street lighting, as well as renovation of schools, medical facilities, and higher education institutions.

First initiatives covered by this guarantee agreement were presented by Nadia Calviño, President of the EIB, during her February visit to Kyiv.

In total, the EIB is going to invest EUR 4.95 billion in 25 projects in Ukraine.

For reference: Ukraine Facility is a EU financial aid program for Ukraine. In 2024-2027, the EU is allocating 50 billion euros to finance the state budget, leverage investment, and provide technical assistance with the program implementation.