EU signed guarantee agreements for 1.4 bln within Ukraine Facility plan

The European Union has signed the first guarantee agreements under the investment component of the Ukraine Facility Plan. This plan provides Ukraine with 50 billion euros in macro-financial assistance through 2027.

During the recovery conference in Berlin, Yulia Svyrydenko, the Deputy Prime Minister and Economy Minister of Ukraine, announced the signing of agreements worth 1.4 billion euros with international and bilateral financial institutions under the Ukraine Investment Framework, which is the investment component of the Ukraine Facility program.

The agreements consist of EUR 1 billion in loan guarantees and EUR 400 million in mixed financial grants related to the repair, restoration, and development of Ukraine’s energy infrastructure.

“Now this investment tool will start working, and new investors will start coming to Ukraine,” the Ukrainian minister said.

The new agreements consist of €1 billion in loan guarantees and €400 million in mixed financial grants to repair, restore, and develop Ukraine’s energy infrastructure.

These agreements also target the transport and municipal sectors, as well as access to finance for small and medium-sized enterprises, including those affected by the war in the de-occupied and frontline regions.

Last week, the Ukrainian parliament ratified an agreement with the European Union on the so-called Ukraine Facility Plan, which sets out reform commitments for the period until 2027.

On March 20, the European Commission transferred the first tranche of the Ukraine Facility to Ukraine for 4.5 billion euros.