EU Commission president Ursula von der Leyen has unveiled a new €2.3 billion package of agreements with international and bilateral public financial institutions to support Ukraine recovery and reconstruction.
The new €2.3 billion package of agreements signed with international and bilateral public financial institutions under the Ukraine Investment Framework, includes €1.8 billion in loan guarantees and €580 million in grants. It is expected to mobilise up to €10 billion in investments in Ukraine.
The announcement came at the Ukraine Recovery Conference in Rome. Objectives are to keep the international focus on Ukraine’s recovery, during the war and after.
At the conference, the Commission president announced the largest equity fund in Ukraine: a new European Flagship Fund for the Reconstruction of Ukraine, backed by the European Commission – through the European Investment Bank – France, Germany, Italy and Poland.
“Today, the EU reaffirms its role as Ukraine’s strongest partner. Not just its top donor, but a key investor in its future,” said Ms von der Leyen: “With €2.3 billion in agreements signed, we aim to unlock up to €10 billion in investments to rebuild homes, reopen hospitals, revive businesses, and secure energy. This is solidarity in action. Ukraine is moving closer to the EU every day — in energy, education, roaming, and culture. Europe stands with Ukraine — today and tomorrow.”
With an initial capital of €220 million, the Fund aims to mobilise €500 million by 2026 – with further fundraising foreseen as security conditions improve. The Flagship Fund will foster the development of a private equity ecosystem in Ukraine, attracting new capital and maximising synergies with existing market players.
The agreements include:
Supporting SMEs: €500 million in guarantees and grants to help Ukraine’s small businesses, including start-ups and those employing veterans and displaced persons.
Mobilising strategic investments: €600 million for large-scale private sector projects in key sectors like energy, transport, and manufacturing.
Rebuilding cities and communities: €520 million for municipal infrastructure in war-affected areas, including healthcare, urban mobility, and housing.
Energy security and green transition: €265 million to stabilize Ukraine’s energy grid, rebuild renewable energy capacity, and improve energy efficiency.
Critical infrastructure: €310 million to repair and rebuild critical infrastructure, including housing, hospitals, and medical facilities.
The European Commission also announced its proposal for the fourth disbursement under Pillar I of the Ukraine Facility – the Ukraine Plan – expected in August. This fourth payment, worth up to €3.05 billion.
In parallel, the Commission is disbursing €1 billion today under the sixth instalment of the EU’s €18.1 billion Macro-Financial Assistance (MFA) package to Ukraine, which is to be fully paid out by the end of 2025. With this payment, the Commission’s total lending to Ukraine under this MFA reaches €8 billion since the start of the year.
The agreements include:
- Supporting SMEs: €500 million in guarantees and grants to help Ukraine’s small businesses, including start-ups and those employing veterans and displaced persons.
- Mobilising strategic investments: €600 million for large-scale private sector projects in key sectors like energy, transport, and manufacturing.
- Rebuilding cities and communities: €520 million for municipal infrastructure in war-affected areas, including healthcare, urban mobility, and housing.
- Energy security and green transition: €265 million to stabilize Ukraine’s energy grid, rebuild renewable energy capacity, and improve energy efficiency.
- Critical infrastructure: €310 million to repair and rebuild critical infrastructure, including housing, hospitals, and medical facilities.
The Commission also announced its proposal for the fourth disbursement under Pillar I of the Ukraine Facility – the Ukraine Plan – expected in August. This fourth payment is worth up to €3.05 billion.
In parallel, the Commission is disbursing €1 billion under the sixth instalment of the EU’s €18.1 billion Macro-Financial Assistance (MFA) package to Ukraine, which is to be fully paid out by the end of 2025. With this payment, the Commission’s total lending to Ukraine under this MFA reaches €8 billion since the start of the year.
Webpage on EU support for Ukraine
