The European Union is strengthening its economic support for Ukraine with a new funding package of nearly €600 million aimed at revitalizing energy systems, transport infrastructure, and private-sector resilience. The announcement was made during the Ukraine Recovery Conference held in Rome, where the European Investment Bank (EIB) Group and the European Commission outlined their commitment. The funding primarily consists of EIB loans backed by EU guarantees.
A significant portion of the funding will go toward critical infrastructure, including the restoration of major hydropower plants and municipal heating systems. Additional support will repair key roads and bridges, including the M06 highway, and improve border crossings, all vital for trade and economic recovery.
The package also includes robust financial support for Ukrainian small and medium-sized enterprises (SMEs). New EIB loans are being provided to local banks—Ukreximbank, Ukrgasbank, and Bank Lviv—to support green investment initiatives. Further financing will be unlocked through EU-backed guarantees to other Ukrainian banks, such as Kredobank and the local branch of Piraeus Bank.
To enhance Ukraine’s export capacity, ten EU Member States have joined the €300 million InvestEU Ukraine Export Credit Pilot. This EIF-managed initiative supports EU exporters trading with Ukraine by providing credit guarantees through national export agencies, facilitating the flow of goods, services, and critical technologies into Ukraine.
The EIB also launched the Ukraine FIRST (Facility for Infrastructure Reconstruction) project preparation programme, jointly developed with the EBRD and the European Commission. The €30 million initiative, supported by donor contributions, will aid the Ukrainian government in turning its recovery priorities into actionable, well-prepared infrastructure projects through technical and feasibility assessments.
Additionally, the EU is establishing the European Flagship Fund for the Reconstruction of Ukraine—an equity fund aimed at attracting up to €500 million in investment for businesses supporting Ukraine’s recovery. Key partners include Germany, France, Italy, Poland, and their national development banks.
Ukraine’s green transition will also benefit from a €20 million grant from the German government’s International Climate Initiative (IKI Fund), enabling municipal-level deployment of renewable energy solutions like solar panels, batteries, and heat pumps. The EIB will collaborate with GIZ and UNDP to help local authorities implement these measures, particularly in small towns with limited resources.
An additional €19.6 million from Germany’s IKI Fund will support Ukraine’s coal-dependent regions through the Just Transition and Just Resilience for Ukraine (JTR-U) Programme. This initiative focuses on reducing the socio-economic impact of coal phase-out and creating new economic opportunities in these communities.
To ensure transparency and the proper use of recovery funds, the EIB has signed a new agreement with Ukraine’s State Audit Service. This partnership will strengthen oversight, enhance risk detection, and support anti-fraud efforts. It complements broader collaborations with Ukrainian anti-corruption bodies like NABU, the Prosecutor General’s Office, and the Economic Security Burea.
