Luxembourg Pledges €1.3m to Support EIB's Ukraine Fund

On Thursday 13 July 2023, the European Investment Bank (EIB) and the ministers of sixteen EU countries, including Luxembourg, signed expressions of intent for the EIB EU for Ukraine Fund in support of Ukraine's agenda for recovery and reconstruction.

Announced in spring 2023 as part of a larger EU for Ukraine initiative, the EIB's EU4U Fund is designed to help rapidly scale up support for Ukraine's most urgent infrastructure needs and sustain the economy, noted the EIB in a press release.

The member countries having announced their intention to contribute to the fund include France (€100 million), Italy (€100 million, announced in April 2023), Spain (up to €70 million), the Netherlands (€52 million), Poland (€25 million), Lithuania (€10 million), Ireland (€7 million), Latvia (€7 million), Belgium (up to €6 million), Slovakia (€5 million) and Luxembourg (€1.3 million).

In addition, the following EU Member States confirmed their support and their intention to contribute to the fund with the amounts to be finalised: Croatia, Cyprus, Denmark, Estonia and Greece. The EIB noted that the size of the fund is expected to grow further with future commitments.

The EU4U Fund is designed to enable the EIB to sustain its support for Ukraine and will serve as a temporary bridge solution until longer-term EU measures become available.

The fund will facilitate deployment of both public and private sector projects, with the main focus on municipal infrastructure such as schools and hospitals, transport networks, water and wastewater treatment facilities, digital and cybersecurity capability, and improved access to finance for Ukrainian entrepreneurs. 

The EIB recalled that it had offered immediate relief to Ukraine right after the outbreak of the war, disbursing €1.7 billion of financing in 2022 to help finance emergency repairs to the country's infrastructure ravaged by Russian bombing. The EIB also provided a €4 billion credit line to support the integration of refugees from Ukraine in EU countries.

The bank added that, through the EU for Ukraine initiative and its fund, it remains committed to stepping up its activities in Ukraine, in line with the mandate given by EU leaders and in close cooperation with the European Commission, European Parliament, EU Member States and international partners.

Luxembourg's Minister of Finance, Yuriko Backes, commented: "This is not the time to spare our efforts. It is our common duty to continue supporting Ukraine to help it cope with the humanitarian, economic and social consequences of this unjustified and unjustifiable war. Luxembourg therefore welcomes the launch of the EIB's EU4U trust fund and is pleased to announce a pledge of €1.3 million to this initiative. Going forward, we need to make sure that collectively as EU Member States we provide the necessary political support and firepower to the EIB to continue deploying its much-needed support for Ukraine and its people."

"Given the sheer scale of needs in Ukraine, the international community has a financial imperative to provide additional support for immediate needs and reconstruction. I am deeply grateful to the EU Member States that have already made pledges to the EIB EU for Ukraine Fund as well as to all those that expressed their support today," EIB President Werner Hoyer added. "These and future pledges will help Ukraine's economy and its staunch resistance to the Russian invasion. The support expressed today will also help pave the way for the country’s EU membership. We have rebuilt before, and in solidarity with Ukraine and our fellow EU and international partners, we will rebuild again!"

Ukrainian Prime Minister Denys Shmyhal noted: "Ukraine urgently needs international support in financing a rapid recovery. In particular, we have identified energy, housing, critical social infrastructure and the private sector as priorities. We count on the support of the EIB and its shareholders, the EU Member States, in restoring critical infrastructure. We are grateful to our partners for their quick and timely assistance during the war."