The European Investment Bank announced on 7 November the disbursement of €100 million ($115 million) to Ukraine, splitting the funding between business support and municipal heating infrastructure repairs, according to the bank's statement.
The financing package directs €70 million ($80.5 million) to Ukrgasbank under the €400 million ($460 million) Ukraine Economic Resilience Facility Lending Envelope. These funds will expand access to long-term loans for micro, small and medium-sized enterprises and mid-caps across the country. The loan also supports investments that reduce greenhouse gas emissions and improve energy efficiency, with Ukrgasbank on-lending the money to businesses on more favorable terms.
The remaining €30 million ($34.5 million) goes to municipal district heating systems, disbursed as €15 million ($17.25 million) to Ukrgasbank and €15 million ($17.25 million) to Ukreximbank. These amounts represent the first tranches of larger EIB district heating loans totaling €50 million ($57.5 million) and €100 million ($115 million) respectively. The funds will help communities and public utilities repair and upgrade heating systems, improve energy efficiency in public buildings, and deploy renewable energy solutions.
"The disbursement of these funds ensures that support is now reaching Ukrainian businesses and municipalities at a critical time," said EIB Vice-President Teresa Czerwińska, who oversees the bank's operations in Ukraine. "It helps keep local economic activity going and enables communities to maintain heating and essential public services during the winter."
The financing aims to reduce dependence on vulnerable centralized infrastructure and enable reconstruction of facilities damaged by Russian attacks. Municipalities will gain more independent and efficient heating systems for schools, hospitals and residential communities.
European Union Commissioner for Enlargement Marta Kos noted the timing of the support: "This is now the fourth winter in which Russia tries to keep Ukrainians in the cold. We are seeing the worst attacks on energy infrastructure in this war."
"Support from the European Investment Bank is extremely important for the sustainable reconstruction of Ukraine," said Acting Chairperson of the Management Board of Ukrgasbank Rodion Morozov. "Owing to these funds, we will be able to finance businesses and communities that are restoring critical infrastructure and implementing district heating and energy-efficient solutions throughout the country."
The funding operates under the EU for Ukraine Fund and the Ukraine Investment Framework, which is part of the broader €50 billion (57.5 billion) Ukraine Facility. The European Commission provides a €1.95 billion ($2.24 billion) guarantee under the Ukraine Investment Framework for these operations.
The EIB's EU for Ukraine Fund, established in 2023, has received contributions from 16 EU member states totaling €410 million ($471.5 million). Since Russia's full-scale invasion in 2022, the EIB has provided €4 billion ($4.6 billion) in financing for Ukraine.
Chairman of the Management Board of Ukreximbank Viktor Ponomarenko emphasized the impact of the funding: "The first tranche of funding under the EIB's Ukraine district heating project, made possible through the steadfast support of the European Union and European Investment Bank, provides Ukrainian communities with the means to withstand the challenges of winter under continuous attacks of Russia."
The support complements recently signed EIB financing with Naftogaz Ukraine to help replenish the country's gas reserves ahead of winter, the bank reports.
