Ukraine to receive EUR 500 million loan from Germany to rebuild infrastructure of eastern Ukraine

During the visit of Prime Minister Yatsenyuk and Finance Minister Jaresko to Berlin on April 1, the Government of Ukraine and KFW Bankengruppe signed a memorandum of understanding for a non-binding financial loan and a framework agreement on individual loans worth up to €500 million.

The financial support from Germany will be provided as part of broader international financial support which Ukraine will receive from its bilateral and multilateral partners. The support was unlocked as part of the new IMF-approved Extended Fund Facility program. These funds, provided to Ukraine by Germany, will be used for the restoration and modernization of Eastern Ukraine, including new construction, reconstruction and capital repair. It will also be put towards modernizing the region’s infrastructure, targeting transport, energy and heat, energy efficiency, water supply, sanitation, social infrastructure, rehabilitation and housing. Individual loans will be used to finance projects in areas of Ukraine with large amount of officially registered internally displaced persons. Specifically, the Donetsk, Luhansk, Dnipropetrovsk, Zaporizhia and Kharkiv regions, as well as other parts of Ukraine."We are grateful to Germany for its leadership in Europe in terms of support for Ukraine and for its role in the continuation of sanctions against Russia”, said Minister of Finance Natalie Jaresko.

“Germany’s financial support is an important contribution to the rebuilding of our country, especially in the regions most affected by the unprovoked violence in the east of Ukraine. As we look to modernize our infrastructure and return our economy to growth, we look forward to our partnership with Germany flourishing even more.", Minister of Finance Natalie Jaresko added.