EU approves $1.63bn for Ukraine — railways get the most, shelters the least

Railways get €132.5 million, roads €106 million, housing €123 million, and border crossings €68.5 million — that is how the Ukraine Investment Framework’s Governing Board has divided the first €466.5 million of a newly approved €1.5 billion recovery package
The aftermath of a Russian strike on a passenger train on 2 March. Source: Kuleba
The aftermath of a Russian strike on a passenger train on 2 March. Source: Kuleba
EU approves $1.63bn for Ukraine — railways get the most, shelters the least

The Governing Board of the Ukraine Investment Framework (UIF) has approved a new package of eight programmes totalling $1.63 billion, Ukrainian Deputy Prime Minister for Reconstruction Oleksiy Kuleba announced on 9 March.

Of that sum, $508.5 million will go to projects coordinated by the Ministry of Development of Communities and Territories, according to Kuleba.

The largest single allocation — $144.4 million — is earmarked for railway infrastructure maintenance and the development of rail connections. Roads come next: $115.5 million will continue funding under the "Roads of Solidarity" project, covering logistics, repair and reconstruction of highways.

Housing accounts for $134.1 million, directed at scaling up the "Energodim" and "VidnovyDIM" programmes for energy-efficient residential restoration. A further $28.9 million will fund the construction and repair of shelters in buildings being restored under EIB municipal programmes.

Border infrastructure receives $74.7 million — described as the first tranche of a project to modernise crossing points on Ukraine's western border. An additional $10.9 million is allocated to top up existing projects.

Outside the Ministry of Development envelope, the European Bank for Reconstruction and Development (EBRD) programme includes $109 million for decentralised heat and energy supply projects, implemented in direct cooperation with cities and businesses.

"Financing combines EIB loan resources and EU grant support, which allows reducing the financial burden on the budget," Kuleba said.

The announcement comes against the backdrop of Ukraine's broader reconstruction needs. The Cabinet of Ministers reported on 23 February that the country's total rebuilding requirements stand at $588 billion, of which $90.6 billion covers the restoration and modernisation of the energy sector over the next decade.

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