The European Investment Bank (EIB), the European Union's bank, has this week disbursed the remaining €550 million of its €1.05 billion in immediate assistance to Ukraine. The first tranches (€500 million) were paid out on 14 September. This €1.05 billion of immediate assistance is part of the €1.59 billion package of the Ukraine Solidarity Urgent Response. The remaining €540 million will be used for resuming implementation of existing EIB-financed projects in Ukraine, as they progress, excluding areas of active hostilities and territories not controlled by the Ukrainian government.
The EIB’s second Ukraine Solidarity Urgent Response was prepared in cooperation with the European Commission as an urgent measure to support Ukraine in the context of Russia’s unprovoked war of aggression. The package benefits from an EU guarantee under the external lending mandate and complements the €668 million of immediate financial support for Ukraine provided by the EIB in early March 2022.
The disbursed amount of €550 million will help the Ukrainian government to cover urgent financing needs, restore some of the most critical damaged infrastructure, resume the provision of municipal services — including transport services and vital infrastructure networks — and support cities in the process of recovering basic functions and basic services for the population. It will also support Ukrenergo, Ukraine’s electricity company, in its critical role as enabler of the stable functioning of the Ukrainian electricity grid. It will therefore ensure it maintains power supplies to industries and households through the rehabilitation of key transmission infrastructure. This is required to maintain system stability and back-up synchronisation with European electricity networks.
The latest €1.59 billion package of support under the EIB Ukraine Solidarity Urgent Response, backed by an EU guarantee, consists of two blocks of interventions:
- €1.05 billion of immediate assistance to ensure Ukraine's immediate needs. This package was fully disbursed between September and October 2022.
- €540 million for resuming EIB-financed projects in Ukraine. The selected projects 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.
EIB President Werner Hoyer said: “As the EU bank, the European Investment Bank has been a key supporter of Ukraine for many years, and we will keep on supporting it during these terrible times and for the reconstruction of a free, prosperous country. Working hand in hand with the European Commission and the government of Ukraine, we have already fully disbursed over €1.7 billion to Ukraine since the start of the war — €668 million in just weeks after the invasion and €1.05 billion in September and today to ensure Ukraine continues to operate. Our support will help the Ukrainian government to cover its most acute funding needs and ensure the continued functioning of the most critical functions of the Ukrainian state in the face of such enormous challenges. In recent days, Russia has again escalated the war by hitting civilian targets in Ukraine. There is no excuse for this barbarism. Russia’s war against Ukraine is a war against European values that we must all be prepared to defend. Alongside our EU partners, we want to step up activities to ensure Ukraine can recover quickly and continue to develop as a free and democratic nation.”
“I travelled to Kyiv two weeks ago to listen to our Ukrainian partners, learn about their needs and about how we can actively contribute to rebuilding in the wake of the destruction brought about by the Russian invasion. Today we are delivering on our commitment to stand by Ukraine by disbursing €550 million for the country’s most urgent financial needs, which brings our total financing for the country to €1.7 billion. We want to ensure that Ukraine can recover as fast as possible and implement its national recovery plan. Together with our partners in Team Europe, the EIB will continue to support Ukraine as an EU candidate country while financing urgent infrastructure needs and providing support for its macro-financial stability,” added EIB Vice-President Teresa Czerwińska, who is responsible for operations in Ukraine.
Valdis Dombrovskis, European Commission Executive Vice-President for an Economy that Works for People, said: “This much-needed support for Ukraine comes at a time when the country and its people are coming under even greater pressure from Russia’s brutal war machine. It will have a real impact on the ground, helping Ukraine to cover its immediate financial needs: repairing damaged critical infrastructure and making sure that the Ukrainian people continue to receive basic services. It will also allow state power company Ukrenergo to maintain vital power supplies to industries and households, which will be crucial as the winter approaches. This funding is part of the European Union’s unwavering support for Ukraine, which is here to stay.”
Prime Minister of Ukraine Denys Shmyhal said: “I’m grateful to the EIB and the European Commission for consistent financial support in these challenging times for Ukraine and its people. These funds are another significant contribution to financing the urgent needs of our country. Moving forward, we expect the EIB and the European Union to be among the leaders of large-scale post-war reconstruction, the economic recovery and infrastructure financing in our country.”
Since Russia's war of aggression started, EU Member States and EU institutions have been united in their unwavering support for Ukraine as part of a coordinated Team Europe response. Find out more about the assistance provided so far on the European Commission’s website and on the EIB’s website.