EIB earmarks €30m for Ukraine infrastructure

During the World Bank Group-IMF Annual Meetings in Marrakesh, EIB President Werner Hoyer and EIB Vice-President Teresa Czerwińska held a meeting with Ukrainian Minister for Finance Sergii Marchenko and confirmed the disbursement of €30.7 million as part of the EIB’s Ukraine Solidarity Urgent Response package. This financial support, backed by an EU guarantee, is intended to bolster Ukraine’s municipal infrastructure and urban public transport. Additionally, the EIB expressed its commitment to providing further financial assistance by the end of the year.

Amidst its second year of war and facing Russia’s invasion, Ukraine continues to receive unwavering support from the European Union and the European Investment Bank. Collaborating closely with the European Commission, the EIB is actively contributing to Ukraine’s recovery and reconstruction efforts through concrete and supportive initiatives. President Hoyer and Vice-President Czerwińska reassured Finance Minister Marchenko of the EIB’s financial and advisory backing. The EIB is launching a specialised EU for Ukraine Fund, which will offer additional financing across various sectors, including equity support for the private sector. This complements the €100 million already available from the EIB for technical assistance in preparing and executing tangible projects in Ukraine and Moldova.

The €30.7 million in financing is allocated to address the immediate modernisation needs of Ukrainian cities like Kyiv, Odesa, Lviv, Lutsk, and Sumy. This funding aims to ensure sustainable mobility and address critical infrastructure requirements in these municipalities. Specifically, €22 million is designated for acquiring new, sustainable, and Ukrainian-built trolleybuses and trams in Kyiv, Lviv, and Odesa, while the remaining €8.74 million is directed towards crucial municipal projects, such as the rehabilitation of the Hrybovychi landfill and solid waste management facility in Lviv, the implementation of energy efficiency measures in Sumy’s kindergartens, and the enhancement of water supply and sewerage systems in Lutsk.

EIB President Werner Hoyer emphasised the EIB’s unwavering support for Ukraine, underlining that this new funding reflects their commitment to not only provide immediate relief but also contribute to the long-term reconstruction of the country. EIB Vice-President Teresa Czerwińska reiterated their dedication to supporting Ukraine’s resilience and delivering coordinated financial assistance in collaboration with EU partners. This support is crucial for maintaining essential services and facilitating the recovery of Ukraine’s economy.

European Commission Executive Vice-President for an Economy that Works for People, Valdis Dombrovskis, welcomed the EIB’s disbursement to Ukraine, highlighting its role in addressing immediate infrastructure and transportation needs in major cities. This funding, backed by an EU guarantee, is part of the European Union’s steadfast commitment to supporting Ukraine in the face of challenges caused by Russia’s aggression.

Sergii Marchenko, the Minister of Finance of Ukraine, expressed gratitude for the support from the European Investment Bank and the EU, emphasising the significance of this contribution in maintaining Ukraine’s financial stability and ensuring mobility for its citizens amidst the ongoing Russian invasion.

This additional €30.7 million in funding builds upon the substantial support provided by the EIB to Ukraine in the aftermath of the Russian invasion. Since 2022, the EIB has disbursed €1.7 billion in financing to assist with emergency repairs to Ukraine’s infrastructure damaged by Russian attacks. The EU bank has also extended a €4 billion credit line to aid in the integration of refugees from Ukraine into EU countries. Through the EU for Ukraine initiative and its Fund, the EIB remains committed to increasing its activities in Ukraine, aligning with the mandate from EU leaders and working closely with the European Commission, European Parliament, EU Member States, and international partners.