On Monday 25 July 2022, the Board of Directors of the European Investment Bank (EIB), which is based in Luxembourg, approved a further €1.59 billion of financial support for Ukraine to address the country's infrastructure financing gap and urgent needs.
The EIB is providing €1.59 billion, supported by guarantees from the European Union (EU) budget, to help Ukraine repair the most essential damaged infrastructure and resume critically important projects addressing the urgent needs of Ukrainian people.
This is the second package of support for Ukraine under the EIB Ukraine solidarity urgent response developed in close cooperation with the European Commission. It follows an emergency support package of €668 million fully disbursed in early March 2022. Like the first one, this new financing is offered at favourable terms including long tenors.
The second relief package under the EIB Ukraine solidarity response will help essential services to resume and get the most critical infrastructure up and running again, strengthen the country’s resilience and maintain economic stability. It consists of two blocks of intervention:
- immediate financial assistance totalling €1.05 billion. This will consist of upfront disbursements under eight existing finance contracts. It will help the Ukrainian government to cover priority short-term financing needs, provide support to strategic state-owned companies, ensure urgent repairs of damaged infrastructure, resume the provision of disrupted municipal services and support urgent energy and energy efficiency measures in preparation for the cold season;
- resuming implementation of EIB-financed projects in Ukraine totalling €540 million where possible, excluding areas of active hostilities and territories not controlled by the Ukrainian government. 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 state of advancement of underlying projects.
EIB President Werner Hoyer commented: "With this emergency package, as part of Team Europe, we are sending a strong message — the European Union and its Bank remain unshakeable in our solidarity with Ukraine and its people, in its hour of need and in the longer-term support of its reconstruction".
"This will provide the necessary funds to cover urgent needs and ensure the operation of critical infrastructure. We continue to keep in regular contact with Ukraine's government to help flexibly as needed. This is a question of investment in the future of Ukraine, the future of Europe and the future of the free world", 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: "The European Union continues to stand by Ukraine and its people in the face of Russia’s brutal aggression. This EIB support will keep strategic public sector companies financially viable and able to carry out urgent repairs of critical infrastructure, resume the provision of essential services and address other immediate needs of the Ukrainian people, including those displaced by Russia’s war. The European Commission will keep working with EU Member States and our international partners to support Ukraine on every level — for as long as it takes".
Sergii Marchenko, Minister of Finance of Ukraine, stated: "To rebuild Ukraine, we need strong global support and growing financial assistance. I am grateful to the EIB and the European Union for the long-standing cooperation and financial support and for standing with Ukraine for as long as it takes. This €1.59 billion is a further meaningful contribution to the country's immediate financing needs, which are under unprecedented pressure due to Russia's invasion. With this financial support, we will keep working on restoring damaged infrastructure, resuming the provision of municipal services, including transport services and preparing for the coming heating season".