EIB announces €420m for infrastructure and energy projects in Ukraine

The European Investment Bank (EIB) has announced four projects worth €420 million ($433.4 million) in Ukraine to help restore critical infrastructure and services and ensure a stable energy supply to the country.

Nearly three full years since the start of Russia’s invasion of Ukraine, the package – part of the European Union’s €50 billion ($51.6 billion) Ukraine Facility – will be disbursed to new public-sector projects to restore and protect energy supplies, heating systems and other critical infrastructure that has been damaged.

The projects announced include:

• Ukraine Recovery III - €100 million ($103.2 million)
• Ukraine Water Recovery - €100 million
• Ukraine District Heating - €100 million channelled through Ukreximbank
• Support of Ukrhydroenergo Stability and Recovery - €120 million loan to the largest hydropower generating company in Ukraine to help to restore hydropower plants and reinforce the Ukrainian energy system.

Commented Calviño in a release: “This is my first official visit outside the European Union since taking up office as President of the EIB Group last year.

“Support for Ukraine is a top priority and that is why I am so pleased to be here to announce new major projects for SMEs, energy, water and other essential services that will help people to continue with their daily lives and support the country’s economic resilience, while also laying the foundation for a stronger Ukraine on its path to EU membership.”

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Additional financing

Another element of the package is a €40 million ($41.3 million) EIB loan for the planned rollout of the EU’s common 112 emergency number and call system across Ukraine to enhance public safety, complemented by a €12 million ($12.4 million) EU grant and funding from Member States under the EU for Ukraine Fund.

The EIB is also signing a €16.5 million ($17 million) grant from the German government with the Ministry for Development of Communities and Territories of Ukraine to promote renewable energy.

The grant comes through the EIB's International Climate Initiative Fund and is part of the Ukraine Energy Rescue Plan announced by the EIB in October 2024.

The grant will help integrate renewable energy systems into public buildings undergoing renovation works under EIB municipal loans.

This will upgrade social infrastructure and make energy more reliable, cleaner and less costly. The grant will also help to decentralise energy generation, ensuring that critical public buildings in towns and villages are less reliant on electricity supplies from large power stations, making them less vulnerable to blackouts in the event of an airstrike.

Commenting in a release was Deputy Prime Minister for Restoration of Ukraine — Minister for Development of Communities and Territories of Ukraine Oleksii Kuleba: “We deeply value the strong cooperation with the European Investment Bank, in particular under the recovery programmes, which are playing, since 2014 a key role in supporting more than 100 communities across the country.

“The grant for renewable energy, which we also signed today, will play a vital role in ensuring that critical buildings, like hospitals, can continue serving the population amidst power cuts. Together, these initiatives not only accelerate our recovery but also help us build a more resilient and sustainable future for our country.”

Said Berthold Goeke, Director-General for Climate Action, German Federal Ministry for Economic Affairs and Climate Action (BMWK): “Through the Renewable Energy Solutions Programme, the International Climate Initiative (IKI) is helping smaller Ukrainian communities — those most affected by the war and in urgent need — to implement climate-friendly technologies.

“This support enables Ukraine to reduce energy costs and modernise outdated infrastructure in public buildings, laying the foundation for a stable and renewable energy future. In this way, the German government is addressing two critical challenges in Ukraine’s energy system.

“First, we are supporting the development of a decentralized and resilient energy supply, particularly for essential public infrastructure such as hospitals, schools, and kindergartens. Given the ongoing Russian aggression and the destruction of central energy infrastructure, this is vital for ensuring stability and security. Second, our initiative contributes to Ukraine’s long-term energy transition by promoting renewable energy and energy efficiency measures, paving the way for a climate-neutral energy system.”