EIF, Finnvera launch EUR 30 mln pilot to support Finnish SMEs' exports to Ukraine

The European Investment Fund (EIF), part of the European Investment Bank (EIB) Group, and Finland's official export credit agency Finnvera have signed a EUR 30 million guarantee agreement to support Finnish small and medium-sized enterprises' (SMEs) exports to Ukraine.

According to the European Commission, the pilot project was signed under the InvestEU program and is part of the EU's broader efforts to strengthen economic ties with Ukraine andsme support its recovery and EU accession process.

"The agreement enables Finnvera to issue export credit transactions to Finnish companies trading with Ukraine, backed by an EIF guarantee under the InvestEU Export Credit Guarantee Facility. It is one of 13 agreements being prepared with national export credit agencies across EU member states under this facility," the European Commission said in a statement on its website on Tuesday.

The pilot project will support Finnish SMEs and medium-sized companies with fewer than 500 employees to help manage risks and access new opportunities in Ukraine, even in times of war. The EIF guarantee complements the national loss-sharing mechanism put in place by the Finnish Ministry of Economic Affairs and Employment, which allows Finnvera to issue export guarantees to Ukraine under exceptional conditions.

"I welcome this EUR 30 million agreement… Backed by the EU budget and the European Investment Fund, the export facility supports EU businesses to continue trade and strengthen our economic ties with Ukraine. In doing so, it promotes the further integration of the EU and Ukrainian economies and the reconstruction of Ukraine. I look forward to more agreements being concluded using this facility in the near future for the benefit of both EU businesses and the Ukrainian economy," Commissioner for Economy and Productivity, Enforcement and Simplification Valdis Dombrovskis said upon signing the agreement.

EIF Executive Director Juuso Heinilä said the fund had made significant efforts to quickly launch this facility, recognising its potential to strengthen EU SMEs and support Ukraine's economic resilience at a critical time. She noted that the introduction of the guarantee was an important step and similar deals in other EU countries would further expand its impact.

In addition, according to the CEO of Finnvera, from the point of view of the export credit agency it is extremely important that there is an opportunity to support Ukraine's recovery efforts, while creating opportunities for Finnish companies.

"We see Ukraine as a key factor in Europe's future growth and are working broadly with various financial instruments to strengthen the export potential of Finnish companies," he said.

The InvestEU Export Credit Guarantee Facility is a joint initiative of the European Commission and the EIB Group. Its aim is to provide guarantees of up to EUR 300 million to support EU small and medium-sized enterprises exporting goods and services to Ukraine. The facility was introduced in July 2024 and is in high demand in all Member States.

Finnvera is a state-owned special purpose financial company and the official ECA of Finland. Its mission is to promote the creation of new businesses, support growth, investment and restructuring, and to promote internationalisation and exports through financing. Finnvera currently employs 372 people, serves over 21,000 clients and has 15 offices in Finland. By law, the Finnish state covers 50% of Finnvera’s credit and guarantee losses from domestic financing. At the end of 2024, its balance sheet amounted to EUR 14.8 billion.

The InvestEU programme provides the EU with important long-term financing, leveraging significant private and public funds to support a sustainable recovery, and helps to mobilise private investment to implement EU policy priorities such as the European Green Deal and the digital transition. The InvestEU programme brings together a range of EU financial instruments currently available to support investment in the EU, making financing investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who will invest in projects using an EU budget guarantee of EUR 26.2 billion. The budget guarantee will support the investment projects of implementing partners, increase their risk-taking capacity and mobilise at least EUR 372 billion in additional investment.