EU Member States Rally Behind Ukraine: Pledge Over €400 Million to Support Recovery and Reconstruction Efforts
https://www.eib.org/en/press/all/2023-272-eu-member-states-pledge-over-eur400-million-to-the-eib-s-fund-supporting-ukraine?fbclid=IwAR1ih3AHl6YGrphPFKt8_AnmyVq04RSaa7NdBve3Suy3e6l_2amgdvy1oPM_aem_AeeqROHhiARMZTDPygWeQcA5X29YhOCAThxo-t0tv638ofIaIBW0NL

EU Member States Rally Behind Ukraine: Pledge Over €400 Million to Support Recovery and Reconstruction Efforts

EU Member States pledge over €400 million to the EIB’s Fund supporting Ukraine

  • Initial pledges to the Fund from Belgium, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Slovakia, Spain and the Netherlands total €383.3?million.
  • Croatia, Cyprus, Denmark, Estonia and Greece also announced contributions to the Fund with the amounts to be finalised.
  • The size of the Fund is expected to grow further with future commitments.

The European Investment Bank (EIB) and the ministers of 16 EU countries today signed expressions of intent for?the EIB EU for Ukraine Fund ?in support of Ukraine’s agenda for recovery and reconstruction.?Announced in spring 2023 as a part of a larger EU for Ukraine initiative, the EIB’s EU4U Fund will help rapidly scale up support for Ukraine’s most urgent infrastructure needs and sustain the economy.

The member countries announcing their intention to contribute to the Fund include Belgium (up to €6?million), France (€100?million), Ireland (€7?million),?Italy (€100?million, announced in April) , Latvia (€7?million), Lithuania (€10?million), Luxembourg (€1.3?million), Poland (€25?million), Slovakia (€5?million), Spain (up to €70?million) and the Netherlands?(€52?million). In addition, a number of Member States confirmed their support and their intention to contribute to the Fund with the amounts to be finalised. These include Croatia, Cyprus, Denmark, Estonia and Greece. The size of the Fund is expected to grow further with future commitments.

The Fund will enable the EU bank to sustain its support for Ukraine and will serve as a temporary bridge solution until longer-term EU measures become available.

The Fund will facilitate deployment of both public and private sector projects, with the main focus on municipal infrastructure such as schools and hospitals, transport networks, water and wastewater treatment facilities, digital and cybersecurity capability, and improved access to finance for Ukrainian entrepreneurs.

The EIB offered immediate relief to Ukraine right after the outbreak of the war, disbursing?€1.7?billion of financing in 2022 ?to help finance emergency repairs to the country’s infrastructure ravaged by Russian bombing. The EU bank also provided a?€4 billion credit line ?to support the integration of refugees from Ukraine in EU countries. Through the EU for Ukraine initiative and its Fund, the Bank remains committed to stepping up its activities in Ukraine, in line with the?mandate given by ?EU leaders and in close cooperation with the European Commission, European Parliament, EU Member States and international partners.

EIB President Werner Hoyer?said: “Given the sheer scale of needs in Ukraine, the international community has a financial imperative to provide additional support for immediate needs and reconstruction. I am deeply grateful to the EU Member States that have already made pledges to the EIB EU for Ukraine Fund as well as to all those that expressed their support today. These and future pledges will help Ukraine’s economy and its staunch resistance to the Russian invasion. The support expressed today will also help pave the way for the country’s EU membership. We have rebuilt before, and in solidarity with Ukraine and our fellow EU and international partners, we will rebuild again!”

Ukrainian Prime Minister Denys Shmyhal?said: “Ukraine urgently needs international support in financing a rapid recovery. In particular, we have identified energy, housing, critical social infrastructure and the private sector as priorities. We count on the support of the EIB and its shareholders, the EU Member States, in restoring critical infrastructure. We are grateful to our partners for their quick and timely assistance during the war.”

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Executive Vice-President of the European Commission Valdis Dombrovskis?said: “We warmly welcome the financial pledges from EU Member States for this new EIB Fund to support Ukraine’s recovery and reconstruction and bring it to scale. This funding will be crucial to implement a strong pipeline of projects under the EIB’s Ukraine support package to address Ukraine’s vast needs. It will also complement the EU guarantee that allows the EIB to provide?€100?million of new loans ?under this initiative. We hope that more Member States will commit to this initiative to assist Ukraine with its most urgent infrastructure needs and maintain its macro-financial stability in the face of Russia’s relentless aggression.”

EIB Vice-President Teresa Czerwińska,?who is responsible for operations in Ukraine, said: “Since the beginning of Russia’s war, we have moved fast to support Ukraine, and we are not slowing down. The EU for Ukraine Fund will enable us to sustain and intensify our support for Ukraine in advance of the establishment of additional longer-term EU measures. We cannot wait until after the war to help Ukraine reconstruct its infrastructure and relaunch its economy. This has to happen now.”

Quotes from the Ministers of the EU Member States concerned

Minister of Finance for Belgium Vincent van Peteghem?said: “Belgium stands ready to contribute to the EU for Ukraine initiative. Reconstruction of Ukraine requires big investment efforts, combining both financial support and technical sector assistance, from both the public and private sector. Therefore, since the first days of the war, the EIB has been one the of the main partners standing side by side with Ukraine. This new EU for Ukraine Initiative marks an important further step in our support for the Ukrainian people.”

Minister of Finance of Croatia Marko Primorac?said: “Having experienced the same type of aggression ourselves in the 1990s, we understand the importance of standing by our Ukrainian friends, both financially and emotionally. We extend our full support to Ukraine, also affirming our strong belief in the joint EU solidarity.”

Minister of Finance of Cyprus Makis Keravnos?said: “Cyprus, itself being a victim of the illegal Turkish invasion and continued occupation of its territory, is a supporter of the principles of international law, including territorial sovereignty. Having similar experiences, we empathise with the Ukrainian people and continue to contribute to the country's reconstruction efforts.”

Minister of Development Cooperation and Climate Policy of Denmark, Dan J?rgensen?said: “The EIB’s assistance is crucial in scaling up the support for Ukraine’s most urgent needs. Denmark looks forward to cooperating closely with EIB in implementing programmes both nationally and in the Mykolaiv region in Ukraine.”

Minister of Finance of the Republic of Estonia Mart V?rklaev?said: “The EIB has the ability and resources to support Ukraine in the urgently needed rehabilitation effort already. We can make our contribution to unlock this support.”

French Minister for the Economy, Finance, Industrial and Digital Sovereignty Bruno Le Maire?said: “The European Union's support for Ukraine is essential. It is therefore normal and necessary for the EIB to make a full contribution to this collective effort. Of course, exceptional situations call for exceptional responses. And this is the case here with the establishment of the EU for Ukraine Fund, which is intended to serve as a transitional solution to enable the Bank to continue its crucial work in Ukraine.”

Minister of Finance of Greece Kostis Hatzidakis?said: “Greece is a steadfast supporter of Ukraine's fight for freedom, independence and territorial integrity. Our contribution to the EIB's Fund is testament to our commitment to help rebuild what the horrors of this unjust war destroyed.”

Irish Finance Minister and Governor of the European Investment Bank Michael McGrath?said: “The European Investment Bank has played a leading role supporting Ukraine since Russia’s invasion. I welcome the new EU for Ukraine Initiative and Fund and am pleased to support priority recovery and resilience investment in Ukraine during this time of need. It is my hope that the EU4U Fund will receive broad support so that it can be as effective as possible. In that regard, it is my intention that Ireland will support this important Initiative and subject to national approval processes, will make a financial contribution of €7?million towards this Fund.”

Minister of Economy and Finance of Italy Giancarlo Giorgetti?said: “I welcome the success of this initiative that Italy has promptly supported. Ukraine’s reconstruction will positively impact the country as well as European and global geopolitical equilibrium.”

Minister of Finance of the Republic of Latvia Arvils A?eradens?said: “Today, Latvia is announcing a €7 million grant contribution to the EIB EU for Ukraine Fund to facilitate continued investments in Ukraine in repairing damaged infrastructure and rebuilding its economy. Latvia’s overall support to Ukraine exceeds 1.3% of our country’s GDP, and we continue looking for ways to keep helping Ukraine in any way we can.”

Minister of Finance of the Republic of Lithuania Gintar? Skaist??said: “Lithuania strongly condemns Russia’s brutal war of aggression against Ukraine and stands firmly and in full solidarity with the Ukrainian nation. We welcome the establishment of the EU4U Fund, to which we commit to contribute €10?million, and which will enable the Bank to continue financing urgent infrastructure projects and supporting resilience of Ukraine's economy.”

Minister of Finance for Luxembourg?Yuriko Backes?said: “This is not the time to spare our efforts. It is our common duty to continue supporting Ukraine to help it cope with the humanitarian, economic and social consequences of this unjustified and unjustifiable war. Luxembourg therefore welcomes the launch of the EIB's EU4U Fund and is pleased to announce a pledge of €1.3?million to this initiative. Going forward, we need to make sure that collectively as EU Member States we provide the necessary political support and firepower to the EIB to continue deploying its much-needed support for Ukraine and its people.”

Minister of Finance of Poland Magdalena Rzeczkowska?said: “The European Investment Bank actively supported Ukraine before the war and continues its involvement after Russia's aggression. It’s financing significantly helped to keep the state and critical infrastructure functioning. The establishment of the EU4U Fund, with contributions from Member States, including Poland, will allow to continue this support until new funds are allocated for the EIB under the EU budget.”

Minister of Finance of Slovakia Michal Horváth?said: “We stand ready to contribute to the EU4U Fund. The unjustifiable war of aggression against Ukraine is testing our capacity to take effective action to support economic resilience and development in our immediate neighbourhood. The EU4U Fund is a welcome initiative which should be followed by further bold action to secure Ukraine’s future within the European Union.”

Vice President of Government of Spain and Minister for the Economy and Digital Transformation Nadia Calvi?o?said: “We will continue to provide financial support to Ukraine in order to strengthen its resilience and set the basis for a fast reconstruction.”

Minister of Finance of the Netherlands Sigrid Kaag?said: “We need to stand by and support Ukraine by keeping its economy afloat and support its reconstruction. Ukraine has our full political support to win this war, and we recognise the importance of continued presence of the EIB as the EU bank in Ukraine. For this reason, the Netherlands has endorsed the EU for Ukraine Fund, and we are planning to contribute €52 million.”

National press releases:

Belgium [EN ?FR ] -?Croatia ?-?Italy ?-?Ireland ?-?Latvia? - Luxembourg?[EN ?FR ]?-?Netherlands? -?Poland ?-?Slovakia? -?Spain



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