Forging Ukraine's path to recovery
A major global financial effort will be required to rebuild Ukraine once the war is over. The EU has already contributed substantial financial support to boost the country’s resilience and recovery, but more support will be needed in the medium to long-term: to re-establish the foundations of a free and prosperous country, anchored in European values and well-integrated into the European and global economy and to support it on its European path.
While Russia's war of aggression continues, the overall needs for the reconstruction of Ukraine are not yet known. Nevertheless, it is important to design the main building blocks of this international effort already now.
“Ukraine can count on the EU's full support. We stand ready to take a leading role in the international reconstruction efforts to help rebuild a democratic and prosperous Ukraine. This means investments will go hand in hand with reforms that will support Ukraine in pursuing its European path.”
Ursula von der Leyen, President of the European Commission
The Ukraine Facility
To help Ukraine in its recovery, reconstruction and modernisation efforts, the EU will launch a new support mechanism for the years 2024 to 2027. The Ukraine Facility is a dedicated instrument which will allow the EU to provide Ukraine with up to €50 billion in stable and predictable financial support during this period.
The Facility underlines the EU’s commitment to supporting Ukraine in the face of Russia’s ongoing war of aggression and on its path towards EU membership.
Ukraine Donor Platform
The Ukraine Donor Platform was launched on 26 January 2023. The Platform allows for close coordination among international donors and financial organisations and ensures coherent, transparent, and accountable support.
Its aim is to ensure enhanced coordination amongst all key players providing short-term financial support but also longer-term assistance for the reconstruction phase. In this way, it builds on the results of the Conferences in Lugano, Berlin and Paris, to help bridge the gap between needs and resources.
Mobilising international support
It is now that Ukraine needs help the most. The European Commission and its partners are mobilising international support for Ukraine's economic and social stabilisation, reconstruction and recovery from the effects of war.
At the Ukraine Recovery Conference 2024 in Berlin, European Commission President Ursula von der Leyen announced the signature of €1.4 billion in new guarantee and grant agreements to support Ukraine's recovery and reconstruction, as part of the Ukraine Investment Framework. This will allow beneficiary international financial institutions to provide €3.2 billion in support to financial intermediaries and final beneficiaries in Ukraine.
These agreements will benefit private companies, including small and medium-sized enterprises, municipalities and Ukrainian state-owned enterprises. They will focus on the repair, rehabilitation and development of energy infrastructure, which has been heavily targeted by Russia.
At the Ukraine Recovery Conference 2023 in London, the European Commission, the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the International Finance Corporation (IFC) signed agreements worth over €800 million to mobilise private investment for the recovery and reconstruction of Ukraine's economy.
The agreements, which are supported by the European Fund for Sustainable Development Plus, the financing arm of NDICI-Global Europe, underscore the joint international commitment to mobilise the private sector for Ukraine's recovery and reconstruction.
In October 2022, the European Commission and Germany, as the then chair of the G7, co-hosted the International Expert Conference on the Recovery, Reconstruction and Modernisation of Ukraine in Berlin.
The conference was another important step that demonstrated unwavering support from the EU and the international community to Ukraine. It also highlighted that the Commission and the international community will continue to support Ukraine beyond its immediate needs, and on its path to EU accession.
Support for Ukrainian schools
Because the future of Ukraine begins in its schools, the EU is supporting the rehabilitation of damaged schools with €100 million, announced by the President in her 2022 State of the Union address.
The European Commission has allocated around €14 million to purchase school buses and bring Ukrainian children safely to school. The Commission has also launched an EU-wide campaign to donate school buses for Ukraine, channelled through the EU Civil Protection Mechanism.
In parallel, the Commission will work with Ukraine to ensure the country’s seamless access to the single market, empowering Ukraine to make the most of its potential, help accelerate growth and create opportunities.