EU expands support for Ukraine with more than €200 million in new grant financing

The European Investment Bank (EIB), in cooperation with the European Commission and the Ukrainian government, has announced more than €200 million in new EU grant financing to help restore reliable water services in Ukraine, secure safe housing for communities across the country and reinforce energy resilience. The announcement was made at the ReBuild Ukraine Conference in Warsaw, on 13 November.

These grants complement EIB-financed water recovery and social housing programmes as well as the EIB’s loan to Naftogaz Ukraine.

Both the new grants and the related EIB loans are backed by EU budget guarantees under the Ukraine Investment Framework, which forms part of the €50 billion Ukraine Facility, and reflects the coordinated Team Europe effort to support Ukraine’s recovery and reconstruction.

The new funding features €75 million in EU grants to support the Ministry for Development of Communities and Territories of Ukraine in delivering EIB-financed projects. This includes €25 million to complement an ongoing EIB loan for water recovery, improving access to clean drinking water and modern wastewater treatment across the country. A further €50 million will support the EIB-approved social housing reconstruction loan, with the goal of developing a sustainable model and financing the construction of publicly owned social and affordable rental housing, particularly in communities hosting displaced people. 

“We are supporting Ukraine with investments in clean water, safe homes and a reliable energy system. These are the basics Russia is trying to take away. Our goal is to make sure people can live their daily lives while rebuilding and modernising their country,” said European Enlargement Commissioner Marta Kos.

In addition, a €127 million EU grant to Naftogaz Ukraine will complement the €300 million EIB loan signed and fully disbursed in October. This increased support will help to secure strategic long-term gas reserves and strengthen the resilience of Ukraine’s energy system amid continued Russian attacks. Ensuring reliable access to energy is essential to keeping heating, electricity and public services running during the heating season. Naftogaz has committed to reinvesting an equivalent amount in renewable energy and decarbonisation. 

The EU grant has been made possible by financial support from Norway.

The EIB also welcomed progress in the rollout of the European Flagship Fund for the Reconstruction of Ukraine, an EU-backed equity initiative being developed with the European Commission, where the EIB is considering participation as an anchor investor alongside the governments of France, Germany, Italy and Poland and their development banks. Consultations with potential fund managers have now been completed, making it possible to move toward next stages of the fund’s establishment. Once operational in 2026, the fund is expected to play a key role in mobilising equity financing to support Ukraine’s reconstruction, economic development and path towards EU integration.

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Press release