EIB Council approves allocation of EUR 1.6 billion in financial aid to Ukraine

The Council of the European Investment Bank has approved the allocation of EUR 1.59 billion in financial assistance to Ukraine.

That follows from a statement by the Ministry of Finance, reports Ukrainian News Agency.

On July 25, the Board of Directors of the European Investment Bank, with the support of the European Commission, approved additional financial assistance for Ukraine in the amount of EUR 1.59 billion to finance infrastructure and urgent needs.

This aid package is part of the EIB's Emergency Solidarity Measures with Ukraine, prepared in cooperation with the European Commission. The financing is guaranteed by the EU within the scope of the External Lending Mandate and complements the emergency financial support for Ukraine in the amount of EUR 668 million, which was provided to Ukraine by the EIB in early March 2022.

In the conditions of martial law, the Ministry of Finance of Ukraine and the government carry out systematic work with international partners to attract resources to finance the priority needs of the state budget and restore damaged infrastructure as a result of the criminal actions of the Russian Federation.

The involved part of financial aid in the amount of EUR 1.05 billion will be provided to Ukraine in the near future to finance priority needs.

In particular, the financial resource can be used to support the financing of priority expenditures of the state budget of Ukraine aimed at measures to prepare housing and communal facilities for the heating season, restoration and modernization of railway infrastructure, electricity, heating and water supply facilities damaged by hostilities and objects of residential and communal infrastructure, ensuring energy efficiency and energy saving.

The rest of the allocated financial aid (EUR 540 million) will be directed at resuming the implementation of EIB-financed projects in Ukraine.

Selected projects will cover energy, energy efficiency, roads, transport, education and infrastructure, as well as reconstruction and rehabilitation programmes.

As Ukrainian News reported, in March, the EIB approved EUR 668 million euros of emergency financial support for Ukraine.