Spain joins the 'EU for Ukraine – EU4U' Fund in support of the recovery and reconstruction program of Ukraine

Spain will contribute up to €70 million to the EIB's 'EU for Ukraine' Fund

This decision joins the commitments of Slovakia, France, Ireland, Italy, Latvia, Lithuania, the Netherlands, Luxembourg and Poland to the Fund, which total €377,3 million.

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The European Investment Bank (AT) and the finance ministers of 16 countries of the UE have signed letters of intent today for the 'EU for Ukraine – EU4U' Fund in support of the Ukrainian recovery and reconstruction programme. Announced in spring 2023 as part of a broader EU initiative to Ukraine, the EIB's 'EU4U' Fund will help to rapidly increase support for Ukraine's most urgent infrastructure needs and to sustain the country's economy.

 

In addition to Spain, have announced their intention to contribute to the Fund Slovakia (€5 million), France (€100 million), Ireland (€7 million), Italy (€100 million, announced in April), Latvia (€7 million), Lithuania ( €10 million), the Netherlands (€52 million), Luxembourg (€1,3 million) and Poland (€25 million). In addition, several Member States confirmed their support and their intention to contribute to the Fund with amounts to be determined. These include BBelgium, Cyprus, Croatia, Denmark, Estonia and Greece. The size of the Fund is expected to continue to grow with future commitments.

 

The Fund will allow the EU Bank to maintain its support for Ukraine and will serve as a bridging or temporary solution until the EU has longer-term measures.

 

The Fund will facilitate the deployment of projects from both the public and private sectors, focusing mainly on municipal infrastructure such as schools and hospitals, transport networks, water and wastewater treatment facilities, digital and cybersecurity capacity, and on improving access to financing for Ukrainian entrepreneurs.

 

The EIB offered immediate aid to Ukraine just after the outbreak of war, disbursing €1.700 billion of financing in 2022 to help fund emergency repairs to the country's infrastructure ravaged by Russian bombing. He EU Bank also provided a €4.000 billion credit line to support the integration of refugees from Ukraine in EU countries. Through the 'EU for Ukraine' initiative and its Fund, the Bank remains committed to intensifying its activities in Ukraine, 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.

 

The vice president of the Government of Spain and minister of Economy and Digital Transformation, Nadia Calviño, declared: “We will continue to provide financial support to Ukraine to strengthen its resilience and lay the foundation for rapid reconstruction.”

 

El EIB President Werner Hoyer, stressed: “Given the enormous magnitude of the needs in Ukraine, the international community has a financial imperative to provide additional support for immediate needs and reconstruction. I am deeply grateful to the EU Member States that have already committed to the 'EU for Ukraine' Fund, as well as everyone who has expressed their support today. These commitments, and those to come, will help Ukraine's economy and its steadfast resistance to Russian invasion. The support expressed today will also help pave the way for the country's accession to the EU. “We have rebuilt before, and in solidarity with Ukraine and our fellow EU and international partners, we will rebuild again!”

 

The Ukrainian Prime Minister, Denis Shmyhal, commented: “Ukraine urgently needs international help to finance a rapid recovery. Specifically, we have identified energy, housing, critical social infrastructure and the private sector as priorities. We count on the support of the EIB and its shareholders, the EU Member States, to restore critical infrastructure. We thank our partners for the prompt and timely assistance provided during the war.”

 

The Executive Vice President of the European Commission, Valdis Dombrovskis, said: “We very much welcome the financial commitments of EU Member States for this new EIB Fund to support the recovery and reconstruction of Ukraine and bring it to scale. This financing will be crucial to launch a strong portfolio of projects under the EIB's support program for Ukraine to address the country's enormous needs. It will also complement the EU guarantee that allows the EIB to provide €100 million of new loans under this initiative. We hope that more Member States will commit to this initiative to help Ukraine with its most urgent infrastructure needs and maintain its macro-financial stability in the face of relentless Russian aggression.”

 

The Vice President of the EIB Teresa Czerwińska, responsible for operations in Ukraine, concluded: “Since the beginning of the Russian war, we have moved quickly to support Ukraine, and we are not going to slow down. The 'EU for Ukraine' Fund will allow us to maintain and intensify our support to Ukraine before additional longer-term EU measures are put in place. We cannot wait for the war to end to help Ukraine rebuild its infrastructure and relaunch its economy. The time for this to happen is now.”