EIB and Ukraine Government sign MoU to accelerate deployment of financial support and project execution on the ground

April 19, 2024.

    The new memorandum of understanding (MoU) sets priorities and reinforces collaboration to accelerate investments on the ground, with €560 million available for ongoing projects this year.
    On top of support for crucial public sectors including housing, municipal services, energy and transportation infrastructure, efforts will also focus on scaling up the EIB’s support for the private sector and enhancing advisory services.
    This multi-sector cooperation between the EIB and Ukraine, planned for the coming years, will be financed via the European Union’s €50 billion Ukraine Facility and the Euro100 million dedicated by the EIB for advisory services.
    The European Investment Bank (EIB) and the Government of Ukraine have agreed on a strategic cooperation framework supporting Ukraine’s reconstruction, recovery, and EU integration efforts. This reinforced partnership places future investments within critical public and private sector initiatives that will be supported by funds from the EIB’s EU for Ukraine Fund and the European Unions Euro50 billion Ukraine Facility, in which the EIB plays a key implementing role.
    
    The memorandum signed today calls for the rapid implementation of ongoing EIB projects in Ukraine, with the country having access to Euro500 million in EIB loan funds and Euro60 million in EU grant funds in 2024. It outlines an envelope of at least €2 billion from the Ukraine Facility, which the EIB is prepared to invest in critical public sector projects such as housing and public building renovation, municipal infrastructure, energy, roads, railways, healthcare and civil protection. These include the modernisation of key export routes and railway lines, enhancements in hydroelectric and renewable energy production, and the strengthening of Ukraine's national electricity grid and healthcare facilities.
    
    The memorandum also highlights the EIBs enhanced support for private sector growth, including for funding and risk-sharing instruments such as partial portfolio guarantees. This will enable local financial intermediaries to provide vital access to finance for local small and medium businesses (SMEs) on favourable terms.
    
    Additionally, the agreement outlines stronger advisory support for Ukraine by opening up the highly-rated advisory services programme JASPERS (Joint Assistance to Support Projects in European Regions) to help prepare significant investments and improve capabilities to meet EU standards.
    
    The memorandum was signed by EIB President Nadia Calvino and Ukrainian Prime Minister Denys Shmyhal at the Spring Meetings 2024 in Washington, with EU Commissioner Valdis Dombrovskis witnessing and endorsing the agreement during the signing ceremony.
    
    EIB President Nadia Calvino said: “Together with Prime Minister Denys Shmyhal, we agreed to enhance our cooperation to facilitate and speed up the deployment of EU financial support and investment in projects on the ground for the benefit of the Ukrainian people, including essential energy infrastructure, roads, railways, hospitals, housing and civil protection initiatives. The European Union’s Euro50 billion Ukraine Facility and a dedicated Euro100 million envelope for advisory services will enable us to intensify our support to the country in the path towards EU membership.”
    Ukrainian Prime Minister Denys Shmyhal said: “We are grateful for the European Investment Bank’s steadfast and continuous support. Today’s memorandum confirms our commitment to accelerate work on current projects and also emphasises our focus on preparing for new EIB investments in critical public and private initiatives that will be closely aligned with our strategic needs and the Ukraine Facility. It is a key factor to build a resilient and self-sufficient economy. All these projects and this memorandum will significantly facilitate Ukraine’s rapid recovery and bring us closer to the European Union.”