Polish aid

The Polish government has contributed €25 million to a European Investment Bank (EIB) fund dedicated to the reconstruction of Ukraine following Russia’s full-scale military invasion in 2022. The agreement between the EIB and Poland increases the size of the EU for Ukraine Fund to €398.35 million.

Created by the EIB in 2023, the fund aims to help rebuild infrastructure, restore essential services and stimulate economic growth in Ukraine. Part of the EU for Ukraine (EU4U) initiative supporting vital public and private reconstruction projects and improving access to finance for entrepreneurs in the country, the fund has received contributions to date from 14 EU countries.   

“Poland joining the EIB-led EU for Ukraine Fund marks an important step in supporting Ukraine’s economic resilience,” said EIB vice-President responsible for operations in Ukraine, Teresa Czerwińska. “Thanks to the Polish contribution, the fund is now worth nearly 400 million euros. This money will help drive public sector investment to rebuild critical infrastructure, as well as propping up Ukrainian entrepreneurs and businesses to keep the economy going. On top of that, the EIB finances from its own resources advisory support to prepare infrastructure investment projects despite the ongoing war.”

“Supporting Ukraine has been a long-standing priority for Poland, including through development cooperation. Since the Russian aggression on Ukraine in 2022 our efforts have intensified to address humanitarian needs and help Ukraine in recovery and post-war reconstruction. Poland is proud to be one of the initiators of the establishment of the EU for Ukraine Fund in 2023 and now to fulfil our political commitment with financial contribution of €25 million EUR. We hope that these funds will also help Ukraine to modernize on its EU accession path” said Polish Undersecretary of State at the Ministry of Foreign Affairs Jakub Wiśniewski.

In addition to Poland, the EU for Ukraine Fund has received contributions from Belgium, Croatia, Cyprus, Denmark, Estonia, Finland, France, Italy, Latvia, Lithuania, Luxembourg, the Netherlands and Spain.

The guarantees provided under the Fund enable the EIB to support reconstruction projects in Ukraine that might otherwise be too risky to finance. The EU for Ukraine Fund also supports project promoters and beneficiaries by lowering the borrowing costs for them through investment grants.

The fund has already supported several projects including by providing €25 million for an initiative to strengthen small and medium-sized enterprises (SMEs) in Ukraine and Moldova and €50 million for a new metro fleet in the capital Kyiv. Other projects in the pipeline include renovation works for damaged housing, repairs to Ukraine’s critical export routes and an emergency response line for life-threatening situations.

Background information 

Present in Ukraine since 2007, the EIB has been unwavering in its support for the country’s EU integration, which has become even more vital given Russia’s war against Ukraine. With a portfolio of signed projects valued at €7.3 billion, the Bank has invested in municipal infrastructure, energy, transport and small businesses, all with the goal of improving daily life, boosting economic growth and lending support for Ukraine’s resilience and reconstruction efforts. Since Russia launched its full-scale invasion of Ukraine, the EIB has provided immediate relief, disbursing over €2 billion of financing for emergency repairs to the country’s ravaged infrastructure.

Through the EIB’s EU4U Fund and the broader initiative, the Bank remains committed to stepping up its activities in line with the mandate given by EU leaders and in close cooperation with the European Commission, the European Parliament, EU Member States and international partners. The EIB also plays a key role in implementing the European Union’s €50 billion Ukraine Facility.