EIB commits more than €450 million to support Ukrainian energy infrastructure
The European Investment Bank (EIB) Group has announced that it will expand its support for Ukraine’s economy by strengthening critical energy infrastructure, facilitating access to financing for businesses and boosting trade with the EU.
EIB Group President Nadia Calviño briefed European Union foreign ministers about the latest round of support measures at a meeting held on 22 July in Brussels.
The EIB Group plans new loans totalling €450 million for Ukrainian energy investments, including the reconstruction of hydropower plants and electricity grid infrastructure damaged by Russian attacks, and the restoration of district heating networks in Ukrainian cities.
A further €86 million will go to Ukraine’s national grid operator, Ukrenergo, to build anti-drone shelters for power stations. Those measures are meant to strengthen the resilience of the Ukrainian energy system through the next heating season.
The EIB Group also approved three partial portfolio guarantees expected to generate over €110 million in new lending to Ukrainian micro, small and medium-sized enterprises through a trio of Ukrainian banks. The guarantees are due to be signed with the corresponding banks in the second half of 2024 and will support 550 Ukrainian companies, sustaining approximately 8,250 jobs. Additionally, the EIB Group aims to provide partial portfolio guarantees to five more banks in Ukraine by the end of the year under the EU4Business Guarantee Facility.
On top of this, the EIB is this week joining forces with UKRSIBBANK, a subsidiary of BNP Paribas Group and one of Ukraine’s largest banks, to establish a revolving credit facility of at least €150 million in Ukrainian hryvnia to support war-affected businesses. This local-currency credit facility is expected to be in place by the end of 2024. It marks the EIB’s second initiative to boost local-currency lending in Ukraine following a partnership with Citibank Ukraine worth between US$50 million and US$100 million in Ukrainian hryvnia.
Furthermore, by the end of this month and following an agreement signed with the European Commission in June, the European Investment Fund (EIF) will launch a call under a €300 million export-credit guarantee facility to support EU companies trading with Ukraine. Backed by the EU’s flagship InvestEU programme, the initiative will offer guarantees to export-credit agencies in EU Member States, Norway and Iceland that wish to aid exports to Ukraine.
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