EU announces new EUR 1.5 bln investment package for Ukraine under Ukraine Investment Framework

The Ukraine Investment Framework steering committee approved a new package of eight programs for Ukraine worth a total of EUR 1.5 billion on Friday. The UIF is part of the EU’s Ukraine Facility program and aims to attract public and private investment for Ukraine’s recovery and reconstruction.

"For the first time, the UIF will also allocate resources to dual-use technologies and strategic industries. This follows the European Commission’s commitment announced at the EU-Ukraine Investment Conference last November," the EU Delegation to Ukraine said.

The EUR 1.5 billion programs aim to attract EUR 3.4 billion in new investment to support vital sectors such as energy, education, communications, agriculture and small business, and will fund construction of shelters in educational institutions.

The sixth meeting of the UIF steering committee was chaired by the European Commission and attended by representatives of EU member states, observers from the European Parliament, Ukraine’s government and Verkhovna Rada, Norway’s government, and leading European and international financial institutions.

The announced programs will be implemented by financial institutions, some already working with the European Commission in Ukraine (EBRD, IBRD, KfW, IFC) and new partners (Finnvera, BPIFrance, CDP), demonstrating the UIF’s importance in attracting new partners.

The EU Delegation said the UIF has allocated EUR 8.4 billion to date, or 90% of its total volume. These allocations are expected to mobilize EUR 25.2 billion in investment in Ukraine.

The UIF mechanism provides financial instruments totaling EUR 9.3 billion, while the total Ukraine Facility amounts to EUR 50 billion.