According to the Delegation of the EU to Ukraine, these funds will be directed to Ukraine’s rapid recovery, and are allocated for the repair of municipal and energy infrastructure. It is reported that this EU guarantee is one of the EU for Ukraine (EU4U) Initiative elements, which the EIB approved in March 2023.
The initiative also includes the creation of the EU4U Fund and a €100M package of technical and consulting assistance from the EIB’s funds. The EC will use the European Fund for Sustainable Development Plus (EFSD+) and the EU Instrument for Neighborhood, Development, and International Cooperation, Global Europe, to guarantee new loans.
These loan agreements are expected to be signed later this year and disbursed immediately upon Ukraine’s request.