EU launches European Flagship Fund for the Reconstruction of Ukraine

The European Commission has launched the European Flagship Fund for the Reconstruction of Ukraine, thereby creating the largest equity fund dedicated to Ukraine’s reconstruction. The initiative was announced at the Ukraine Recovery Conference 2026, co-hosted by Poland and Ukraine in Gdańsk on 25 and 26 June.

Established under a Team Europe approach, the Fund is backed by the European Commission through the European Investment Bank, together with France, Germany, Italy and Poland. With an initial capital of €220 million, including the Commission contribution under the Ukraine Investment Framework of €160 million, the Fund is projected to leverage up to €7 billion in investments for large-scale infrastructure, productive industries and other projects critical to Ukraine’s economic recovery.

Overall, the Commission has stepped up investment in Ukraine through agreements worth more than €1.1 billion signed in Gdańsk under the Ukraine Investment Framework. These will unlock investment in sectors that are essential to Ukraine’s recovery, resilience and long-term growth. 

Other investments included:

• Scaling up investments in dual-use technologies and the defence industry: €343 million in grants and guarantees will support large-scale private sector projects in strategic areas, such anti-drone systems, unmanned ground vehicles, aviation, advanced navigation, communication technologies and other strategic industries.
• Rebuilding cities and communities: €478 million in grants and guarantees will support municipal infrastructure projects, including healthcare facilities, affordable housing, energy efficiency, water management and other essential public services.
• Strengthening energy security and green transition: €100 million in guarantees will help stabilise Ukraine’s energy system, restore renewable energy capacity and improve energy efficiency.

With these new agreements, total EU commitments under the Ukraine Investment Framework reach €8.5 billion and are expected to mobilise nearly €26 billion in public and private investment.

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Press release

European Flagship Fund for the Reconstruction of Ukraine