EIB Group steps up support for Ukraine with over €470 million for housing, connectivity and private sector growth

The European Investment Bank (EIB) Group is stepping up support for Ukraine with over €470 million in new financing to strengthen private-sector investment and critical infrastructure, including housing and roads, bridges and border infrastructure. 

The package was announced on 26 June at the Ukraine Recovery Conference in Gdańsk, Poland in cooperation with the European Commission and the Ukrainian government. Most of the financing takes the form of EIB loans backed by European Union guarantees.

A major component is an €80 million to be committed by the EIB to the ‘European Flagship Fund for the Reconstruction of Ukraine’. This EU-backed equity fund being developed with the Commission and several Member States is projected to mobilise more than €1 billion in public and private equity capital. 

The package also includes a €100 million loan to Ukreximbank and EU-backed guarantees for PrivatBank and Ukrgasbank that aim to unlock around €500 million in financing for Ukrainian small and medium-sized enterprises (SMEs), supporting green investments, energy efficiency and businesses affected by the war with Russia or operating near the conflict zones.

The package also features financing for critical infrastructure through the Ministry for Development of Communities and Territories of Ukraine. It includes a €50 million EIB loan, complemented by a €50 million EU grant, for the construction of social housing. An additional €25 million EU grant to the ministry will support the recovery and modernisation of Ukraine’s water sector. The new financing also includes a €96 million loan to repair roads, bridges and border infrastructure, strengthening Ukraine’s connectivity with the EU.

“Ukraine is not waiting for peace to start rebuilding. It is repairing roads, restoring water systems, building homes and keeping businesses alive while the war continues,” said European Commissioner for Enlargement Marta Kos. “Today’s agreements with the EIB Group will help Ukraine do more of this. And move closer to the European Union at the same time.”

Beyond financing, the package includes new initiatives developed with the Commission, the Ukrainian government and partner international financial institutions to strengthen reconstruction efforts. These include a ‘Security and Connectivity Initiative’, which will guide future investments and advisory support in transport, energy and digital infrastructure, a ‘GROUND’ report on improving project preparation and implementation and a joint paper by the EIB and the European Bank for Reconstruction and Development (EBRD) outlining priorities for Ukraine’s energy resilience, recovery and integration with the EU energy market.

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