EU unveils €2.3 billion aid package to rebuild Ukraine
Photo: European Commission President Ursula von der Leyen (Getty Images)
President of the European Commission Ursula von der Leyen has announced a new €2.3 billion package to support Ukraine's recovery and reconstruction efforts, according to the press service of the European Commission.
"With €2.3 billion in agreements signed, we aim to unlock up to €10 billion in investments to rebuild homes, reopen hospitals, revive businesses, and secure energy. This is solidarity in action. Ukraine is moving closer to the EU every day — in energy, education, roaming, and culture. Europe stands with Ukraine — today and tomorrow," Von der Leyen said in a speech at the Conference on Ukraine's Recovery in Rome.
The new €2.3 billion package of agreements, signed with international and bilateral public financial institutions under the Ukraine Investment Framework, includes €1.8 billion in loan guarantees and €580 million in investments. This package is expected to mobilize up to €10 billion in investments for Ukraine.
The funds will be allocated to:
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Support for small and medium-sized enterprises (€500 million in guarantees and grants);
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Large-scale private sector projects in key areas such as energy, transport, and manufacturing (€600 million);
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Municipal infrastructure in war-affected areas, including healthcare, urban mobility, and housing (€520 million);
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Stabilization of Ukraine’s energy grid, restoration of renewable energy capacity, and improved energy efficiency (€265 million);
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Repair and reconstruction of critical infrastructure, including housing, hospitals, and medical facilities (€310 million).
With the launch of these new investment programs, total EU commitments under the Ukraine Investment Framework now amount to €5.7 billion. These commitments are expected to generate over €18 billion in investments.
Ukraine’s recovery
Today, July 10, European Commission President Ursula von der Leyen announced the creation of a new fund for Ukraine’s reconstruction during the Ukraine Recovery Conference. She called it the world’s largest equity fund to support a war-affected country.
Earlier, Ukrainian President Volodymyr Zelenskyy stated that Ukraine’s reconstruction could take place through a coalition of international partners, following the example of the Marshall Plan. This, he said, would promote economic growth and the modernization of infrastructure.
US President’s Special Envoy for Ukraine, Keith Kellogg, also emphasized that international partners should help Ukraine rebuild after the war by launching a new Marshall Plan for the country.
According to the National Bank of Ukraine (NBU), the likelihood of a large-scale recovery plan being implemented in such a format in the near future is currently less than 15%. The NBU did not include this scenario in its baseline macroeconomic forecast.
