EIB to provide loans to Ukrgasbank for EUR120 mln to support SMEs, implement energy projects

The European Investment Bank (EIB) will provide two loans to the state-owned Ukrgasbank (Kyiv) for EUR70 million and EUR50 million for lending to energy independence projects of municipalities and supporting the "green" growth of small and medium-sized businesses, as well as a new EU portfolio guarantee.

"As part of the Ukraine Recovery Conference (URC) in Rome, UGB (Ukrgasbank) and the European Investment Bank (EIB) announced the signing of a multi-component financial package," the bank said.

It is noted that this will attract additional financing for small and medium-sized businesses in the amount of tens of millions of euros and became one of the first significant results of the Ukraine Recovery Conference 2025 in Rome.

As part of the package, Ukrgasbank will allocate EUR50 million to strengthen the energy independence of Ukrainian municipalities. The funds will be used to modernize district heating infrastructure, develop decentralized heat generation, integrate renewable energy sources, and improve the energy efficiency of public buildings. The EU grant component will make this funding available to frontline communities.

Another EUR70 million will be allocated to support the sustainability and green growth of small and medium-sized businesses. These funds will help enterprises maintain operations, modernize, and implement environmental solutions.

This financing is further reinforced by an EU portfolio guarantee provided by the EIB, which will significantly increase Ukrgasbank's ability to lend and raise critical capital for the private sector by over EUR 31.25 million even in wartime conditions, the bank added.

According to the National Bank of Ukraine, in April 2025, Ukrgasbank ranked fifth in terms of total assets (UAH 220 billion or 5.9%) among 60 banks operating in the country.

As previously reported, the European Investment Bank Group and the European Commission announced a new EU financing package of EUR 600 million at the Ukraine Recovery Conference.