• Estonia has granted a €10 million guarantee to support recovery projects in Ukraine.
  • This brings the EU4U Fund to €267 million, with pledged commitments surpassing €400 million in total.
  • The fund is enabling essential new projects to be approved for Ukraine’s reconstruction, with a focus on repairing war-damaged housing and crucial export routes.

The European Investment Bank (EIB) and the Republic of Estonia have signed a contribution agreement under which Estonia is providing €10 million to the EU for Ukraine Fund. Launched by the EIB in 2023, this fund is a part of a larger EU for Ukraine (EU4U) initiative to address urgent needs and sustain economic stability in Ukraine.

The EU4U Fund supports critical recovery and reconstruction projects involving both the public and private sectors, and improves access to finance for entrepreneurs in Ukraine. To date, it has secured over €400 million in commitments from the majority of EU Member States.

Estonia’s Minister of Finance Mart Võrklaev stated, “All the support given to Ukraine is an investment in the strength of our own democracy and the economy of Europe as a whole. Russia’s attacks have lasted for a long time and Ukraine alone cannot eliminate the results of military activity with its own resources. This is where we have to come together and help Ukraine, so that Ukraine can continue to repel the aggressor and at the same time rebuild its country.”

Head of the EIB Regional Hub for Eastern Europe Jean-Erik de Zagon said, “I am grateful for Estonia’s support for the EIB’s EU for Ukraine Fund. This €10 million contribution, alongside those from other donors, plays a crucial role in bolstering Ukraine’s resilience and in laying the groundwork for the country’s EU membership. We have the expertise and resources necessary for Ukraine’s urgently needed rehabilitation efforts, and contributions like this enable us to mobilise this support effectively.”

Supporting priority investments for Ukraine’s recovery

Operations of the EU4U Fund are currently supported by contributions from ten donors: Belgium, Cyprus, Denmark, Estonia, France, Latvia, Lithuania, Luxembourg, the Netherlands and Spain. Further donors have made pledges and are expected to contribute to the fund in future.

The fund’s first investment provided €25 million for Ukraine's equity growth fund to bolster small and medium businesses in Ukraine and Moldova.

On 18 March 2024, the Contributors’ Committee of the EU4U Fund approved two additional projects amounting to €90 million in EIB lending, backed by guarantees from the fund. These projects will rapidly rebuild and rehabilitate damaged apartment buildings in Ukraine, and improve essential export routes (Solidarity Lanes) in need of immediate, extensive repairs to maintain Ukraine’s export of agricultural and other products to the European Union.

Background information 

Present in Ukraine since 2007, the EIB has been unwavering in its support for the country’s EU integration, which has become even more vital since Russia’s full-scale invasion. With a portfolio of signed projects valued at €7.3 billion, the Bank has invested in municipal infrastructure, energy, transport and small businesses, all with the goal of improving daily life, boosting economic growth and lending support for Ukraine’s resilience and reconstruction. Since Russia’s full-scale invasion of Ukraine in 2022, the EIB has provided immediate relief, disbursing €2 billion of financing for emergency repairs to the country’s ravaged infrastructure.

Through the EIB’s EU4U Fund and the broader initiative, coupled with a key role for the Bank in implementing the European Union’s €50 billion Ukraine Facility, it remains committed to stepping up its activities in line with the mandate given by EU leaders and in close cooperation with the European Commission, the European Parliament, EU Member States and international partners.