Of the EUR 1.4 billion in financing,
At this stage, the programmes will focus on supporting Ukraine’s recovery and reconstruction in three main areas:
Energy: restoring critical electricity infrastructure, increasing generation capacity and investing in renewable energy sources.
Infrastructure: development, repair and rehabilitation of municipal infrastructure, water and sanitation, transport infrastructure and local mobility.
Support for Small and Medium-Sized Enterprises (SMEs): Financing for businesses in de-occupied and frontline regions, businesses owned by war veterans, internally displaced persons and vulnerable groups, as well as businesses investing in production expansion and green technologies.
Under the programmes, private and state-owned enterprises and municipalities will be able to obtain funding, depending on the cost of their projects, both directly from the IFIs and from local partner banks. So far, the EBRD, EIB, IFC, KfW, the European Fund for Southeast Europe (EFSE) and Poland’s Bank Gospodarstwa Krajowego (BGK) have launched their programmes. Local IFI partners involved in the implementation of the UIF include the state-owned Privatbank, Oschadbank, Ukreximbank and Ukrgasbank, as well as a number of private banks.
At this stage of the UIF, public and private enterprises and municipalities that meet the sectors and requirements of the approved programmes can apply for financing and technical assistance. For large projects worth more than €10 million, it is necessary to apply directly to the international financial institutions involved. Small and medium-sized enterprises can apply to Ukrainian partner banks, which will implement programmes for SMEs.
“Under the UIF, companies will have access to guarantees to reduce the cost of collateral for loans, a blended mechanism of loans and grants, and technical assistance in finalising projects and applying for funding. The launch of the first phase of the UIF is an opportunity to attract additional funding from international financial institutions and Ukrainian banks. These programmes are already available for public and private sector projects in the sectors identified in the Ukraine Facility Plan,” said Yulia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.
Ukraine expects further expansion of programmes and new instruments in the next stages of the UIF, as well as the participation of a wider range of IFIs, banks, insurance companies and private equity funds. The decision will be taken by the European Commission at the next meeting of the UIF Steering Committee.
For more information on the Ukraine Investment Framework and an analysis of the approved programmes, instruments and the sectors and types of clients they can work with, please see the presentation: https://www.ukrainefacility.me.gov.ua/wp-content/uploads/2024/06/ukraine-investment-framework.pdf
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