Ukraine Recovery Conference: European Commission announces another €800 million in agreements to mobilise investment for Ukraine’s recovery

On 21 June, the European Commission announced more than €800 million in new financing for Ukraine to mobilise private investment for the recovery and reconstruction of the country’s economy. 

The agreements were signed on the margins of a conference on the reconstruction of Ukraine held in London by representatives of the European Commission, the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC). The agreements are supported by the European Fund for Sustainable Development Plus, the financing arm of NDICI-Global Europe. 

The five signed agreements will provide guarantees that de-risk finance for the Ukrainian private sector, including small enterprises, agri-business, and women-led companies:

1. EU4Business Guarantee for Micro Small and Medium Sized Enterprises: new agreement with the EIB Group to provide €40 million in EU guarantees, including €30 million for Ukraine that will unlock €375 million in loans for small and micro-entrepreneurs. The rest will be made available to banks in Moldova, Georgia, Armenia, and Azerbaijan. 
2. Facility for SMEs – Deep and Comprehensive Free Trade Area (DCFTA): a further €125 million in new loans for SMEs from Ukrainian banks will be made possible thanks to an adjustment to an ongoing risk-sharing programme, funded by the EU and implemented by the EIB Group.
3. Fast Recovery Loans – EU for Ukraine (EU4U) Initiative: €100 million of new EIB financing to Ukraine guaranteed by the EU in sovereign loans for fast recovery, including urgent repairs to municipal and energy infrastructure.
4. Small Loan Guarantee Programme: up to €200 million in financing from Ukraine’s financial institutions to smaller businesses, with a focus on agribusiness and women-owned enterprises thanks to a partnership between the EU and IFC aimed to de-risk investments by the private sector.
5. Grant to Kremenchuk City under the Ukraine Energy Efficiency Fund & Crisis Response Programme: €1.1 million in EU grants channelled through the IFC to Kremenchuk City Council to help renovate municipal buildings to accommodate hundreds of internally displaced people who have fled the areas damaged by Russia’s aggression.

These agreements are separate to the new €50 billion Ukraine Facility, announced on 20 June 2023 and expected to become operational in 2024.

At the Conference, the European commission also expressed interest to support an innovative pilot scheme by the EBRD – ‘War Insurance Pilot Scheme – Ukraine Recovery and Reconstruction Guarantee’. The scheme will protect future private investments as well as insure international shipping and trade against war-risks.

Also, in the margins of the Ukraine Recovery Conference, the first in person meeting of the Steering Committee of the Multi-agency Donor Coordination Platform for Ukraine co-chaired by the European Commission, the United States and Ukraine, took place. The Steering Committee discussed Ukraine’s urgent priority needs for 2023 and next steps for further coordination on Ukraine’s reform agenda.

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Press release

Multi-agency Donor Coordination Platform for Ukraine