The European Investment Bank (EIB) has disbursed €100 million to Ukraine to support economic resilience and critical municipal heating infrastructure amid the ongoing war. The financing, backed by the EU for Ukraine Fund and the European Commission’s Ukraine Investment Framework, demonstrates the European Union’s continued commitment to sustaining Ukraine’s economy and essential public services. This initiative forms part of the broader €50 billion Ukraine Facility and is coordinated under a Team Europe effort.
Of the total funding, €70 million has been allocated to Ukrgasbank to keep Ukrainian businesses operating, safeguard jobs, and advance energy efficiency investments. The financing, provided under the €400 million Ukraine Economic Resilience Facility Lending Envelope, expands long-term loan access for micro, small, and medium-sized enterprises (MSMEs) and mid-caps. It also supports Ukraine’s green transition by enabling investments that reduce greenhouse gas emissions and improve energy efficiency. Ukrgasbank will on-lend these funds to businesses under favourable terms, making finance more accessible and affordable.
The remaining €30 million has been directed to repairing and upgrading municipal district heating systems through Ukrgasbank and Ukreximbank. These first tranches, part of larger EIB loans, will be on-lent to municipalities and public utilities to modernize heating networks, improve energy efficiency in public buildings, and deploy renewable energy solutions. The financing also supports the reconstruction of facilities damaged by attacks, ensuring reliable heating for schools, hospitals, and residential communities while enhancing local energy security.
EIB Vice-President Teresa Czerwińska emphasized that the disbursement ensures timely support to Ukrainian businesses and municipalities, helping maintain economic activity and essential public services during winter. EU Commissioner for Enlargement Marta Kos highlighted that the support strengthens Ukraine’s energy system amid repeated attacks, restoring power plants, expanding renewables, and promoting energy efficiency. Ukrgasbank and Ukreximbank officials noted that the funding is crucial for financing businesses and communities in reconstructing critical infrastructure and modernizing district heating.
This support complements other coordinated EU initiatives, including EIB financing with Naftogaz Ukraine to replenish gas reserves, reinforcing Ukraine’s energy resilience during the war and ensuring that residents, particularly during the cold season, have access to heat and essential services.
