EIB Announces €300 Million in Support for Ukraine's Reconstruction Projects

The projects are designed to bolster critical public infrastructure, including heating, water systems, and social facilities, directly benefiting millions of Ukrainians.

Today, the European Investment Bank (EIB) made a significant step towards accelerating Ukraine’s recovery with the signing of three major new projects totaling €300 million. The announcement, made in Brussels at the European Commission's headquarters, marks the continued and robust support of the EU in Ukraine’s reconstruction efforts amidst the ongoing war. The signing ceremony was attended by key EU officials, including EIB President Nadia Calviño, Vice-President Teresa Czerwińska, and Ukrainian Prime Minister Denys Shmyhal. The projects are designed to bolster critical public infrastructure, including heating, water systems, and social facilities, directly benefiting millions of Ukrainians.

The financing, which is backed by guarantees from the EU’s Ukraine Facility, follows a previous guarantee agreement approved just a month ago with the European Commission, unlocking an additional €2 billion in investments. These funds are being used to support Ukraine's urgent recovery, particularly the restoration of essential services that are crucial for daily life in war-affected regions. Among the essential services being prioritized are heating, water, sanitation, and public infrastructure such as hospitals, schools, and social housing.

These new projects represent a major expansion of the EIB’s efforts in Ukraine, following its various existing programs across the country. They are aimed at ensuring the continued provision of essential municipal services, improving energy efficiency, and fostering long-term resilience in Ukraine’s infrastructure. In particular, communities in Ukraine, including those severely impacted by the destruction of the Kakhovka Dam, will directly benefit from these new investments.

A Closer Look at the €300 Million Investment Package

The €300 million investment is divided into three separate projects, each targeting a specific sector of Ukraine’s recovery needs:

1. Ukraine Recovery III Project (€100 million) The Ukraine Recovery III project focuses on the rehabilitation of vital social infrastructure in over 100 communities across Ukraine. This includes essential public services such as healthcare, education, social housing, water supply, sewerage, and heating. The project aims to restore these services and provide much-needed support to communities that have faced destruction due to the ongoing conflict. By addressing the most urgent recovery needs, this initiative will have a direct positive impact on daily life in affected areas.

2. Ukraine Water Recovery Project (€100 million) The second project in the package targets Ukraine’s water supply and sanitation infrastructure, which has been severely disrupted due to the war. With the €100 million funding, the project will focus on repairing and modernizing water supply systems and wastewater treatment facilities that have been damaged. Restoring safe water and reliable sanitation services is crucial for public health and living conditions across Ukraine. This project will help ensure that communities have access to clean water, which is vital for maintaining hygiene, preventing disease, and improving quality of life.

3. Ukraine District Heating Ukreximbank Project (€100 million) The third initiative involves restoring and modernizing Ukraine’s district heating infrastructure, crucial for providing heat and hot water to households, schools, hospitals, and other public buildings, especially during the cold winter months. Implemented in cooperation with Ukreximbank, which will serve as an intermediary bank, this project will focus on decentralizing heat generation and integrating renewable energy solutions, including energy efficiency improvements in public buildings. The project will restore outdated or damaged heat generation facilities to guarantee the supply of heating during the harsh Ukrainian winters and enhance the overall energy security of the country.

Key Statements from Leaders

Prime Minister Denys Shmyhal of Ukraine expressed his gratitude for the European Investment Bank's substantial support, highlighting that these projects are not only about rebuilding what has been destroyed but also about creating modern, resilient, and energy-efficient infrastructure. He added, "Each of the projects launched today is an investment in the development of Ukrainian communities, the stability of our economy, and the secure European future of our nation."

EIB President Nadia Calviño emphasized the speed at which the European Union and EIB have been able to mobilize support for Ukraine. “Just one month ago, we signed a guarantee agreement with the European Commission to unlock €2 billion of support under the EU’s Ukraine Facility. And already today, we have signed three new projects with the Ukrainian government: for water, district heating, and municipal infrastructure — for schools, hospitals, and housing for internally displaced people,” said Calviño. “This is Europe at its best, speeding up support to reinforce our collective security and strong partnerships.”

Vice-President Teresa Czerwińska, who oversees the EIB’s operations in Ukraine, added, “These investments will help ensure that schools, social housing, hospitals, heating, water, and energy infrastructure continue to function for millions of Ukrainians despite the challenges of war. Together with our EU partners, we are working to deliver concrete support where it is needed most.”

European Commissioner for Enlargement, Marta Kos, underscored the EU’s long-term commitment to Ukraine's reconstruction, stating, “The European Union’s support for Ukraine is a cornerstone of our broader approach to European security and resilience. By backing EIB investments through the Ukraine Facility, we are enabling the swift reconstruction of essential infrastructure, from schools and hospitals to energy. These efforts are not just about recovery; they are a strategic investment in a secure and democratic Ukraine on its EU path.”

Commissioner for Economy and Productivity, Valdis Dombrovskis, reiterated that the EU is fulfilling its commitments to Ukraine: “Today’s agreements will provide a further €300 million in financing to address Ukraine’s urgent recovery and reconstruction needs. This includes repairing critical infrastructure and ensuring essential public services like water and heating are maintained. This sends a clear signal that the EU is delivering on its commitments to Ukraine and its people.”

A Step Towards Ukraine's Future

These projects are part of a broader European Union strategy to support Ukraine’s recovery and long-term stability. By investing in critical infrastructure, the EU is not only helping to rebuild what has been destroyed but also laying the foundation for a future Ukraine that is resilient, energy-efficient, and integrated into the European community. The collaboration between the EIB, Ukrainian authorities, and other international partners continues to play a vital role in the nation’s recovery.

As Ukrainian communities face the challenges of rebuilding, these EIB-backed projects represent an important step in restoring essential services, improving energy security, and advancing Ukraine’s journey towards European integration. The projects also highlight the EU's continued support for Ukraine, reaffirming that the continent is united in its commitment to the country's recovery and eventual peace.