EIB Group and EU Unlock €150M in SME Financing for Ukraine Through New Bank Guarantees

Together, the funding is expected to support more than 2,600 Ukrainian SMEs, helping them remain operational, protect jobs, and contribute to economic stability and recovery during wartime.

 

The European Investment Bank (EIB) and the European Investment Fund (EIF)—together the EIB Group—have signed new EU-backed guarantee agreements with PrivatBank and Ukreximbank to expand access to finance for small and medium-sized enterprises (SMEs) in Ukraine, even as the war continues.

Backed by the European Union’s EU4Business Guarantee Facility, the agreements are expected to unlock up to €150 million in new SME financing, significantly easing lending conditions by lowering collateral requirements and sharing risk with local banks.

Under the new guarantees:

• Up to €100 million in financing will be channelled through PrivatBank

• Up to €50 million will be provided via Ukreximbank

Together, the funding is expected to support more than 2,600 Ukrainian SMEs, helping them remain operational, protect jobs, and contribute to economic stability and recovery during wartime.

Targeting War-Affected and Underrepresented Businesses

The initiative prioritises businesses most affected by Russia’s invasion, including:

• Enterprises operating near conflict zones

• Companies displaced by the war

• Businesses owned or managed by war veterans or internally displaced people

• Women- and youth-led enterprises, as well as startups

By absorbing part of the financial risk, the EU is enabling banks to continue lending where market conditions would otherwise restrict access to credit.

“At a time of extraordinary pressure on Ukraine’s economy, ensuring continued access to finance is essential,” said EIF Chief Executive Marjut Falkstedt. “Through our cooperation with Ukrainian banks, the EIB Group is helping small businesses withstand the war and continue contributing to jobs and economic resilience.”

EU Shares the Risk to Keep Businesses Alive

European Commissioner for Enlargement Marta Kos said investing during wartime carries unavoidable risks—but inaction would be far costlier.

“It is essential to help Ukrainian companies continue operating, protect jobs, and preserve economic stability,” she said. “With these EU-backed loan agreements, the EU assumes part of that risk, making it easier for thousands of Ukrainian companies to access financing.”

Banks Scale Lending Despite Wartime Conditions

PrivatBank and Ukreximbank said the guarantees are critical tools for sustaining business activity and confidence under extreme conditions.

“This is a strategic agreement enabling us to scale up SME financing with the backing of European institutions,” said Larysa Chernyshova, Deputy Chairperson of the Management Board and CFO at PrivatBank. “During wartime, access to loans remains one of the biggest challenges for businesses. These instruments are vital to sustaining economic activity and supporting recovery.”

Viktoriia Masna, Member of the Management Board at Ukreximbank, said the agreement builds on a proven model.

“The guarantee allows us to expand lending on more accessible terms and direct financing to businesses that are preserving jobs and strengthening economic resilience,” she said. “The EU4Business grant component will also provide extra support to vulnerable entrepreneurs, particularly women, youth and businesses in war-affected regions.”

Financing Recovery Before the War Ends

The EIB Group said the agreements demonstrate how risk-sharing, guarantees and blended finance can keep private-sector activity alive during conflict—laying the foundations for recovery even before the war ends.

The initiative reinforces the EU’s long-term commitment to Ukraine’s economy, signalling continued solidarity through practical, market-based support for businesses operating under extraordinary pressure.