The European Commission has announced a €2.3 billion package of agreements with international and bilateral financial institutions to support Ukraine’s recovery and reconstruction, unveiled at the Ukraine Recovery Conference 2025. This funding includes €1.8 billion in loan guarantees and €580 million in grants under the Ukraine Investment Framework, aiming to mobilize up to €10 billion in investments.
As part of a Team Europe approach, the EU also launched the European Flagship Fund for the Reconstruction of Ukraine—Ukraine’s largest equity fund—backed by the European Commission, the European Investment Bank, France, Germany, Italy, and Poland. The fund starts with €220 million in capital, targeting €500 million by 2026 to build Ukraine’s private equity ecosystem.
The new funding will support Ukrainian SMEs, strategic private-sector investments, municipal infrastructure in war-affected regions, energy grid stability, renewable energy recovery, and critical infrastructure reconstruction. Specific allocations include €500 million for SMEs, €600 million for private sector projects, €520 million for municipal recovery, €265 million for energy resilience, and €310 million for rebuilding essential infrastructure.
In addition, the European Commission proposed a fourth disbursement of €3.05 billion under the Ukraine Facility’s Pillar I for August 2025. It also disbursed €1 billion today under the sixth installment of the EU’s €18.1 billion Macro-Financial Assistance package, bringing total disbursements to €8 billion in 2025, reinforcing the EU’s commitment to Ukraine’s economic stability and long-term integration into the European Union.
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