Ukraine: EIB invested more than half a billion euros in 2021 to support economic and social growth

• The EIB backed the economic and social growth of Ukraine with €554 million invested in vital infrastructure across the country. 
• EIB financing in Ukraine was focused last year on support for increased COVID-19 resilience, SME and private sector support, and modern transport and education infrastructure.
• Ukraine remains the top recipient of EIB investments in the Eastern Neighbourhood, accounting for more than 60% of the EIB’s lending in the region. 
• The EIB’s work outside the European Union gets a boost with the launch of EIB Global — the EIB`s development branch.

The European Investment Bank, the bank of the European Union, invested €554 million in 2021 in developing Ukraine`s transport infrastructure, urban mobility, education infrastructure, and the local economy, including support to increase COVID-19 resilience. Ukraine remained the main recipient of EIB funding among the countries of the Eastern Neighbourhood, having received more than 60% of all EIB lending in the region. 

In 2021 the EIB complemented its long-term lending in Ukraine by attracting an additional nearly €29 million in EU grants for urban transport development, energy efficiency of public buildings, recovery of social infrastructure, and vocational education and training development. EU grants will finance technical assistance for the preparation and management of solid, bankable projects.

Since the beginning of the operations in Ukraine 15 years ago, the EIB has invested more than €7 billion in the public and private sectors in the country, making the EU bank one of the top investors in the country. The EIB`s investment in the public sector alone reached €5.9 billion, making it the largest portfolio of all international financial institutions working in Ukraine.

EIB Vice-President Teresa Czerwińska, who is responsible for operations in Ukraine, said: “With the new loans signed in 2021, the EIB reaffirmed its commitment to helping Ukraine grow, develop and become an even better place for living and doing business. We have continued supporting the post-COVID-19 socioeconomic recovery in the country by providing much-needed COVID-19 vaccines for the Ukrainian population and affordable financing for affected SMEs. The EIB is focused on strengthening Ukraine’s economic resilience by fostering enhanced mobility, modernised and energy-efficient infrastructure, high-quality education and a strengthened agricultural sector. As the EU bank, we are happy to support the Ukrainian government and facilitate the EU/Ukraine partnership with concrete and significant investments. By creating a new arm, EIB Global, for our business outside the European Union, we are determined to support green and digital transitions through Europe’s global partnerships.”

Head of the EIB Resident Representation for Ukraine Jean-Erik de Zagon added: “As part of Team Europe, we are proud to have continued maintaining strong support for Ukraine and serving Ukrainian citizens and the country’s economy throughout 2021. We have invested over half a billion euros in vital infrastructure, transport, education, new jobs for Ukrainian citizens, and SMEs. We would not be able to do this without the support from our colleagues and partners in the Ukrainian government, the EU Delegation to Ukraine and our dedicated EIB team both in Luxembourg and Kyiv. I am looking forward to 2022 being yet another great year of partnership and growth for Ukraine and EIB Global, a dedicated arm of the EIB which will allow us to better focus on projects that have a strong impact locally, whether by enhancing digitalisation, promoting renewable sources of energy or building quality infrastructure that reinforces adaptation to climate change.”

The Ambassador Matti Maasikas, Head of the European Union Delegation to Ukraine, said: “Since 2014, the European Union and European financial institutions have mobilised for Ukraine an unprecedented package of more than €17 billion in loans and grants. Last year the European Union also presented the EU Economic and Investment Plan for the Eastern Partnership and its flagship initiatives for Ukraine, which will mobilise up to €6.47 billion in public and private investments to boost economic development and support post-pandemic recovery. We are happy that the EIB remains a key partner in our activities in Ukraine, providing essential investments for improving infrastructure and transport, accelerating green and digital transitions, and driving economic growth and innovation in the country.”

Olha Stefanishyna, Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine, said: “We are happy to see the results of the existing projects across Ukraine’s regions and look forward to starting the implementation of the new ones signed in 2021. Much needed COVID-19 vaccines, modernised social infrastructure and public buildings, eco-friendly public transport, new VET centres of excellence and stronger businesses will greatly contribute to the economic growth, social development and sustainable future of Ukraine. I would like to thank the EIB and the European Union for their continuous support. Together we are transforming Ukraine for the benefits of its people and the whole of Europe.”

Protecting lives and strengthening public health during the COVID-19 pandemic

In 2021, the EIB disbursed €50 million to provide COVID-19 vaccines to Ukrainians and to strengthen the country’s healthcare system. The investment will enable the Ministry of Health to purchase COVID-19 vaccines and finance Ukraine’s national vaccination plan for 2022. 

Improving transport infrastructure and urban mobility in Ukraine

In 2021, the EIB provided €270 million, almost half of its financing provided to partners in Ukraine, for infrastructure rehabilitation, aviation security and safety enhancement at Boryspil International Airport. It is the country`s key passenger and transport hub and the largest civilian airport in Ukraine, vital for the long-term economic development of the country. 

To support global climate action and climate change mitigation in Ukraine, the EIB invested €100 million to upgrade the trolleybus and metro fleets in Kyiv. The EIB’s financing will enable the introduction of more environmentally-friendly and energy-efficient electricity-powered public transport, improve the quality of daily life, and reduce air and noise pollution for almost three million people in Ukraine’s capital and largest city. This was the first sub-sovereign loan from the EIB in Ukraine offered on a standalone basis to a municipality without a state guarantee. 

The EIB supported three Ukrainian municipalities — Ivano-Frankivsk, Zaporizhzhia and Lutsk — with EU investment grants totalling €3.8 million. These grants complement the previous €200 million loan from the EIB to modernise electric transport networks. The EIB loan and EU grants will enable the purchase of trolleybuses and electric buses, including the extension of the trolleybus network in cities with new routes. 

Modern education for Ukraine

In 2021, the EIB directed €58 million to support the ongoing modernisation of Ukraine’s vocational education and training (VET) system. The EU bank’s activity will directly benefit 10 000 teachers and students by financing nine VET centres of excellence in up to nine administrative regions (oblasts) in Ukraine — Chernihiv, Donetsk, Dnipropetrovsk, Ivano-Frankivsk, City of Kyiv, Odesa, Ternopil, Volyn and Zakarpattia.

This long-term investment from the EIB will enable Ukraine`s VET schools to offer attractive educational pathways for young Ukrainians, and in turn accelerate the economic development of Ukraine, enhancing competition and boosting innovation in the country. The European Union complemented the EIB loan with an additional €8.5 million in grants providing valuable technical assistance for efficient project preparation, implementation and procurement. 

For a sustainable, green, globally competitive and job-creating economy

In 2021, the EIB provided a €20 million top-up to an existing loan with the Export-Import Bank of Ukraine (Ukreximbank) to extend its support to additional small and medium businesses in Ukraine, improving their access to affordable long-term finance in local currency as well as their ability to maintain liquidity, create and sustain jobs for Ukrainians.

The EIB’s support for the private sector in Ukraine is diverse and covers companies of all sizes operating in key sectors of the national economy. The EIB provided a €106 million loan to Epicentr Group to modernise Ukraine`s agricultural sector and improve food supply. The investment will finance new grain silos and elevators, modern agricultural equipment, and railcars for transporting grain, which will contribute to efficient resource management, increased productivity and the reduction of agricultural waste — a key precondition for a modern and globally competitive agricultural sector, which, de facto, will contribute to significant positive climate action to curb global warming.

Grants to support social infrastructure rehabilitation and energy efficiency modernisation in Ukraine

In 2021, the EIB supported Ukraine by raising €16.2 million in donor funds to support its operations in social infrastructure rehabilitation and energy efficiency modernisation in Ukraine. This includes a €7 million grant from the EU Neighbourhood Investment Platform, complementing a €340 million EIB loan to improve living conditions and economic activity in areas affected by the conflict in eastern Ukraine. The EU grant and EIB funding will also support the construction of basic infrastructure required by internally displaced people and their host communities.

Another €5.2 million NIP technical assistance grant and a €4 million grant from the multi-donor Eastern Europe Energy Efficiency and Environment Partnership (E5P), secured by the EIB, will help Ukraine take a big step closer to greater energy efficiency of public buildings across the country. These grants will support the proper preparation and implementation of an earlier €300 million EIB framework loan aimed at increasing energy efficiency in 1 000 public buildings, including hospitals, schools, cultural centres, and kindergartens. 

EIB Global — acting globally for a greater local impact 

In January 2022, the EIB Group launched EIB Global, a dedicated development branch. EIB Global brings all the resources of the European Investment Bank to bear on its operations outside the European Union with a structure designed to foster a strong, focused partnership with Team Europe.

EIB Global works through efficient cooperation with our partners and beneficiaries, with development finance institutions, and civil society. The bottom line: increased impact from our financing. EIB Global brings the Bank closer to local people, companies and institutions. 

Strengthening the EU/Ukraine Partnership in 2022

The European Investment Bank will continue to support the social and economic development of Ukraine in 2022, with investments in digital transformation of public institutions, water supply and wastewater treatment, metro modernisation, as well as street lighting and infrastructure needs in the areas affected by Ukraine’s transition away from coal.

The EIB is also looking to provide direct loans to municipalities in Ukraine in support of the Ukrainian government’s strategy of financial decentralisation and delegation.

The EIB will also further foster the implementation of existing projects in the country so that more Ukrainians can benefit from modernised social infrastructure, comfortable public transport, better roads, energy-efficient public buildings, high-quality education, great opportunities for doing business and a better environment.