Ukraine will launch the Finnish-Ukrainian Investment Fund to restore and strengthen its economy.

Ukraine’s Verkhovna Rada adopted a law, On Ratification of the Framework Agreement between the Government of Ukraine and the Government of Finland on Projects Financed under the Finnish-Ukrainian Investment Fund (FUIF) Program. Finland will cover at least 35% of the grant portion of the agreement, according to the Ministry of Finance.

“Ratification of the agreement will enable the attraction of funds from Finland under the Finnish-Ukrainian Investment Fund Program,” the ministry explained.

This agreement will finance vital projects that will aid in restoring and enhancing the Ukrainian economy. The FUIF program allows for the provision of preferential loans to support projects aimed at Ukraine’s socio-economic development. The grant portion of the fund will enable these favorable loan terms. Grants will be utilized to service the loans (with Finland covering the full interest payments) and to repay part of the loans’ principal amount (the specific amount will be determined for each project individually within the grant component). Loans will come with a 100% guarantee from Finland’s export credit agency, Finnvera Plc.