EU, EIB Unveil €600M Package to Rebuild Ukraine’s Energy and Economy

The package allocates resources across a range of critical sectors, with a clear focus on restoring essential infrastructure and enabling private-sector resilience.

In a powerful show of solidarity and support, the European Investment Bank (EIB) Group and the European Commission have jointly announced a €600 million financing package for Ukraine aimed at accelerating the country’s reconstruction amid ongoing conflict and economic hardship. The announcement was made at the Ukraine Recovery Conference held in Rome, underscoring the European Union’s long-term commitment to Ukraine’s energy resilience, transport infrastructure, private sector recovery, and community development.

The comprehensive financing deal combines EIB loans backed by EU guarantees, equity funding, grant-based project support, and export credit facilities to help Ukraine address immediate infrastructure damage while laying the foundation for long-term economic recovery and EU integration.

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Targeted Recovery: Energy, Transport, SMEs, and Border Infrastructure

The package allocates resources across a range of critical sectors, with a clear focus on restoring essential infrastructure and enabling private-sector resilience.

Energy and Power Infrastructure

• A €120 million EIB loan to Ukrhydroenergo, Ukraine’s largest hydropower company, will support the rehabilitation of three strategic hydropower plants—Kaniv, Kremenchuk, and Dnipro.

• Two €50 million loans to Ukrgasbank and Oschadbank will empower local municipalities to upgrade district heating systems using decentralised, renewable, and energy-efficient solutions, particularly in public buildings.

Transport and Border Connectivity

• A €134 million EIB loan to Ukraine’s Agency for Restoration will fund repairs to damaged roads and bridges, including the M06 highway, a vital corridor linking Kyiv to the EU via Hungary.

• Funds will also modernise border crossings, bolstering EU-Ukraine “Solidarity Lanes” to ensure continued trade and humanitarian flows.

“Every investment we make is driven by fundamental human needs — the need for safety, warmth and the chance to build a better future,” said EIB Vice-President Teresa Czerwińska, who oversees Ukraine operations.

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Fueling Recovery: Financing for SMEs and Green Business Growth

Recognising the importance of small and medium-sized enterprises (SMEs) to Ukraine’s economy, the EIB has introduced a suite of support measures:

• €230 million in new SME loans:

  • €100 million to Ukreximbank

  • €70 million to Ukrgasbank

  • €60 million to Bank Lviv

• EU-backed guarantees extended to:

  • Ukrgasbank

  • Bank Lviv

  • Kredobank (Polish-owned)

  • Piraeus Bank Ukraine

These funds will help SMEs access green financing, invest in business continuity, and strengthen local economic resilience in the face of war-induced disruption.

“Support for SMEs creates a strong foundation for the economic development of communities,” said Oleksii Kuleba, Ukraine’s Deputy Prime Minister for Restoration.

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Export Credit Pilot: Keeping EU-Ukraine Trade Flowing

A €300 million Ukraine Export Credit Pilot, part of InvestEU, was also spotlighted during the conference. Backed by the European Investment Fund (EIF), this initiative provides guarantees to export credit agencies in ten EU countries, including:

• France, Germany, Italy, Spain, Denmark, Finland, Latvia, Romania, Slovakia, and Slovenia

Three additional EU countries are expected to join shortly.

The pilot lowers the risk for EU businesses exporting machinery, building materials, and critical technologies to Ukraine, helping sustain Ukraine’s trade activity and bringing it closer to full integration with the EU single market.

“These guarantees help reduce financial risks and keep exports flowing,” noted the EIB Group.

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Ukraine FIRST: Laying the Groundwork for Smarter Reconstruction

To help translate national recovery priorities into bankable investments, the EIB has launched Ukraine FIRST – Facility for Infrastructure Reconstruction. This €30 million programme, developed in partnership with the EBRD and the European Commission, provides technical and planning support, including:

• Feasibility studies

• Environmental and social impact assessments

• Procurement planning

Funded by €20 million from the EU, with €5 million each from the EIB and EBRD, Ukraine FIRST is set to streamline project preparation, particularly in infrastructure, energy, and urban development.

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Equity Investment: Launching the European Flagship Fund

To deepen private sector engagement, the EIB has welcomed the creation of the European Flagship Fund for the Reconstruction of Ukraine, an EU-backed equity investment platform targeting businesses driving Ukraine’s post-war economic revival.

With a target of €500 million at first close, the fund includes support from:

• Germany (KfW)

• Italy (CDP)

• France (Proparco)

• Poland (BGK)

It aims to boost private capital flows, especially in infrastructure, energy, agriculture, and tech-driven industries.

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Green Transition and Energy Resilience

Thanks to a €20 million grant from Germany’s International Climate Initiative (IKI), the EIB will support renewable energy solutions for Ukrainian municipalities already working with EIB-backed projects.

• Through the RES Programme, cities can obtain solar panels, heat pumps, and battery storage systems.

• Delivered in partnership with GIZ and UNDP, the programme ensures quick and effective implementation, especially in resource-constrained towns.

Additionally, a €19.6 million contribution by Germany will support a Just Transition and Resilience Programme targeting Ukraine’s coal-dependent regions, helping communities phase out coal and pivot to sustainable economic activities.

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Strengthening Oversight: Fighting Corruption in Recovery Projects

To ensure transparency and accountability, the EIB and Ukraine’s State Audit Service have signed a partnership agreement to:

• Enhance fraud prevention and risk monitoring

• Support early detection of misuse of EU funds

• Strengthen collaboration with Ukrainian anti-corruption bodies, including NABU, the Prosecutor General’s Office, and the State Bureau of Investigation

This partnership builds on the EIB’s broader efforts to foster trust, accountability, and rule of law as core elements of Ukraine’s recovery.

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A Message of Commitment and Hope

“The agreements announced today reflect the strength of our commitment to Ukraine,” said EIB President Nadia Calviño. “We are helping communities rebuild, supporting businesses, and securing the energy system to build a stronger, more modern Ukraine.”

European Commissioner Marta Kos added, “We are backing infrastructure, energy and opportunity — because recovery starts with hope.”

With this ambitious funding package, the EU and EIB have sent a powerful message: Ukraine’s future lies in resilience, integration, and sustainable development — and Europe will be there every step of the way.