EBRD and EU launch new programme to support Ukraine’s private sector

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have launched a new ‘Ukraine SME Recovery Programme’, which will support Ukraine’s economic recovery by improving access to finance and technical assistance for small and medium-sized enterprises (SMEs), mid-cap companies and startups in wartime.

The EU’s Ukraine Investment Framework (UIF) is supporting the programme by providing €46 million of funding: €41 million of guarantees and nearly €5 million of technical assistance. The initiative brings together risk-sharing instruments and targeted support to foster long-term economic stability, meet immediate recovery needs, and boost resilience and innovation in Ukraine’s private sector, supporting sustainable growth and job creation.

The programme is expected to mobilise at least €135 million of financing for Ukrainian companies and support at least 15 investment projects, while also directly assisting up to 34 start-ups through advisory services and innovative support.

The Ukraine SME Recovery Programme revolves around two complementary components.

The first component will support SMEs and mid-cap companies through the EBRD’s Risk Sharing Facility (RSF), which is implemented via partner banks. 

A total of €41 million of UIF guarantees will provide first-loss risk cover on equal terms to both the EBRD and partner banks. The programme will complement the EBRD’s existing project-by-project RSF pipeline in Ukraine and give the EBRD and Ukrainian partner banks additional confidence to support more complex investment projects, including transactions affected by wartime uncertainty, limited collateral or insufficient sponsor equity. It will also encourage the provision of long-term financing to smaller businesses that are attempting to re-establish and strengthen their asset bases, seeking to “build back better”.

The second component is an expansion of the EBRD’s Star Venture programme in Ukraine, supporting high-potential start-ups and strengthening the broader innovation ecosystem. This will provide tailored advisory support to selected start-ups, local accelerators, and venture capital firms. The funding will help early-stage companies to cover operational and market development costs and improve their ability to attract commercial investment.

The EBRD is Ukraine’s largest institutional investor and has significantly increased its support since Russia launched its full-scale invasion in 2022.

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Press release