EIB Board of Directors, backed by the European Commission, approves €1.59 billion in EU financial assistance to Ukraine

The Russian war in Ukraine had a devastating impact on the country’s population, infrastructure and economy. In view of this extremely difficult situation in Ukraine, the Board of Directors of the European Investment Bank (EIB) today approved additional financial support of €1.59 billion for Ukraine in order to address the country’s infrastructure financing gap and its urgent needs. 1.05 billion euros will be made available immediately.

This relief program is part of the EIB’s solidarity response in Ukraine prepared in cooperation with the European Commission. It benefits from the EU guarantee under the External Lending Mandate and complements the immediate financial support of €668 million to Ukraine provided by the EIB in early March 2022.

The second relief program under the EIB’s Solidarity Response in Ukraine will help essential services to resume and restart the most critical infrastructure, build the country’s resilience and maintain economic stability. It consists of two blocks of intervention:

• Immediate financial assistance totaling €1.05 billion. This will consist of initial disbursements under eight existing financing contracts. It will help the Ukrainian government cover priority short-term financing needs, provide support to strategic public enterprises, provide urgent repairs to damaged infrastructure, resume the provision of disrupted municipal services and support urgent energy and energy efficiency in view of the cold season.
• Resume implementation of EIB-financed projects in Ukraine for a total amount of €540 million where possible, excluding areas of active hostilities and territories not controlled by the Ukrainian government. The projects selected will cover energy, energy efficiency, roads, transport, education and infrastructure, as well as reconstruction and recovery programmes. The exact timing of these disbursements will depend on the progress of the underlying projects.

The package will provide much-needed immediate support to the Ukrainian economy.

Valdis Dombrovskis, Executive Vice-President of the European Commission for an Economy that Works for People, said: “The European Union continues to stand with Ukraine and its people in the face of Russia’s brutal aggression. . This EIB support will enable strategic state-owned enterprises to remain financially viable and able to carry out urgent repairs to critical infrastructure, resume the provision of essential services and meet other immediate needs of the Ukrainian population, including people displaced by the Russian war. The European Commission will continue to work with EU Member States and our international partners to support Ukraine at all levels for as long as necessary.”

EIB President Werner Hoyer said: “Today, with crucial support from the European Commission, we have approved an additional €1.59 billion under the EIB’s Solidarity Program for Ukraine to meet Ukraine’s most urgent funding needs and ensure the country can continue to fulfill its most critical missions. functions, including the rapid reconstruction of social infrastructure. With this emergency package, as part of Team Europe, we are sending a strong message – the European Union and its Bank remain steadfast in our solidarity with Ukraine and its people at this difficult time and in support of more long term of its reconstruction.”

“This will provide the necessary funds to cover urgent needs and keep critical infrastructure running. We continue to stay in regular contact with the Ukrainian government to provide flexible assistance when needed. It’s about investing in the future of Ukraine, the future of Europe and the future of the free world,” added EIB Vice-President Teresa Czerwińska, Head of Operations in Ukraine.

Sergii Marchenko, Minister of Finance of Ukraine, said: “To rebuild Ukraine, we need strong global support and increasing financial assistance. I am grateful to the EIB and the European Union for their longstanding cooperation and financial support and for supporting Ukraine for as long as it takes. This amount of €1.59 billion constitutes a new significant contribution to the immediate financing needs of the country, which is under unprecedented pressure due to the Russian invasion. With this financial support, we will continue to work on restoring damaged infrastructure, resuming the provision of municipal services, including transportation services, and preparing for the next heating season. »

Since the beginning of Russia’s unprovoked and unjustified war of aggression, the EU, Member States and European financial institutions have been united in their unwavering support for Ukraine, in line with a European team approach.
Source: European Commission

Aurora J. William