EU announces new €2.3bn aid package for Ukraine's recovery

EU announces new aid package for Ukraine's recovery. Illustrative photo: Eureporter

European Commission President Ursula von der Leyen has announced a new €2.3 billion package to support Ukraine's recovery and reconstruction efforts.

This was reported by the press service of the European Commission.

«By signing €2.3 billion worth of agreements, we aim to mobilise up to €10 billion of investment to rebuild homes, reopen hospitals, revive businesses and energy security. This is solidarity in action. Every day Ukraine is getting closer to the EU — in energy, education, roaming and culture. Europe supports Ukraine — today and tomorrow,» said Ursula von der Leyen.

It is noted that the new package of agreements signed with international and bilateral public financial institutions under the Ukraine Investment Framework includes €1.8 billion in loan guarantees and €580 million in grants.

These funds will be used, in particular, to

• support for small and medium-sized businesses (€500 million in guarantees and grants)
• large-scale private sector projects in key sectors such as energy, transport and manufacturing (€600 million);
• municipal infrastructure in war-affected areas, including healthcare, urban mobility and housing (€520 million);
• stabilising Ukraine's energy grid, restoring renewable energy capacity and improving energy efficiency (€265 million);
• repair and rebuild critical infrastructure, including housing, hospitals and medical facilities (€310 million).

With the launch of these new investment programmes, the EU's total commitment under the Ukraine Investment Framework now stands at €5.7 billion. These commitments are expected to attract over €18 billion of investment.

Earlier it was reported that the European Union will allocate an additional €900 million from the extraordinary proceeds of Russia's frozen assets to purchase arms and ammunition for Ukraine, bringing the total recent support to Ukraine's defence industry to €3.3 billion.