European Investment Bank Stepping Up Support to Ukraine's Energy Sector and Businesses with Almost €900 Million
The European Investment Bank is introducing new investments to support the energy system and business in Ukraine.
This was written by EIB Group President Nadia Calviño on the X platform and reported on the bank's website.
According to Calviño, the country's energy grid will receive €450 million. Another €86 million will be spent on drone shelters.
The EIB will allocate €300 million to Ukraine to guarantee export loans.
The bank will also provide loans in the national currency.
According to the EIB's website, in particular, €450 million of funding will be used to reconstruct hydroelectric power plants and power grid infrastructure damaged by Russian attacks, as well as to restore district heating networks in Ukrainian cities.
Another €86 million will be allocated to Ukrenergo, Ukraine's national grid operator, to build anti-drone shelters for power plants. These measures are designed to strengthen the resilience of the Ukrainian energy system for the next heating season.
In the latest support package, the EIB Group also approved three partial portfolio guarantees, which are expected to provide over €110 million in new loans to Ukrainian micro, small and medium-sized enterprises through Ukrainian banks. The guarantees are due to be signed in the second half of 2024 with the respective banks and will support 550 Ukrainian companies, which will save approximately 8,250 jobs.
In addition, the EIB Group plans to provide partial portfolio guarantees to five more banks in Ukraine by the end of the year under the EU4Business guarantee programme.
This week, the EIB also joined forces with Ukrsibbank, a subsidiary of BNP Paribas Group and one of Ukraine's largest banks, to open a revolving credit line of at least €150 million in Ukrainian hryvnia to support businesses affected by the war.
The local currency facility is expected to be launched by the end of 2024. This is the EIB's second initiative to stimulate local currency lending in Ukraine, following a partnership with Citibank Ukraine for between $50 million and $100 million in Ukrainian hryvnia.
In addition, by the end of this month, the European Investment Fund (EIF) will announce a call for proposals for a €300 million export credit guarantee facility to support EU companies trading with Ukraine.
The initiative will offer guarantees to export credit agencies in EU member states, as well as Norway and Iceland, that wish to assist exports to Ukraine. Supported by the EU's flagship InvestEU programme, the facility aims to boost trade between the EU and Ukraine and support the Ukrainian economy.
According to the Ministry of Finance of Ukraine, the portfolio of joint projects with the EIB in the public and private sectors is the largest in all the years of cooperation and reaches more than €7 billion. Since the beginning of the full-scale war, the EIB's investments in all areas have reached €2 billion.