The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have launched a new Ukraine SME Recovery Programme aimed at strengthening the country’s private sector during wartime. The initiative focuses on improving access to finance, supporting innovation and helping small and medium-sized enterprises (SMEs), mid-cap companies and startups contribute to economic recovery.
The programme is backed by €46 million from the EU’s Ukraine Investment Framework, including €41 million in guarantees and nearly €5 million in technical assistance. These funds are designed to reduce investment risk, unlock financing and support advisory services for businesses operating under challenging wartime conditions.
In total, the initiative is expected to mobilise at least €135 million in financing for Ukrainian companies and support a minimum of 15 investment projects. It will also directly assist up to 34 startups through targeted advisory services, strengthening the country’s innovation ecosystem alongside traditional business lending.
The programme is structured around two main components. The first uses the EBRD’s Risk Sharing Facility implemented through partner banks, where EU guarantees provide first-loss risk coverage. This structure helps financial institutions extend credit to businesses facing uncertainty, limited collateral or reduced equity, enabling them to rebuild and expand operations.
The second component focuses on startup development through the expansion of the EBRD’s Star Venture programme in Ukraine. This includes advisory support for high-potential startups, accelerators and venture capital firms, as well as assistance with operational development and access to commercial investment.
As Ukraine’s largest institutional investor, the EBRD has significantly increased its financial support since 2022. Its ongoing efforts continue to focus on energy security, private-sector resilience and critical infrastructure, with the aim of sustaining economic activity and supporting long-term recovery and reconstruction.
