Ukraine and the EIB signed a Memorandum of Understanding: The parties set priorities for cooperation for the next 10 years

On April 18, Ukraine and the European Investment Bank (EIB) signed a Memorandum of Understanding in relation to cooperation on public and private sector of economy of Ukraine. The signing took place on the sidelines of the IMF and World Bank Spring Meetings in Washington, DC. 

The signatory on behalf of Ukraine was Prime Minister Denys Shmyhal, and on behalf of the EIB – President Nadia Calviño. 

The Memorandum identifies priority areas of cooperation for the next 10 years:

• Accelerated implementation of existing projects.

In 2024, the EIB will provide over EUR 500 million loan and EUR 60 million grant to support the implementation of existing projects.

• New public sector projects pipeline at the national level.

The portfolio of new national infrastructure projects may include investments in the road sector; modernization of railway lines, railway nodes, and border crossings; energy sector; enhancing civil protection, as well as the protection of Ukraine's strategic national infrastructure and digital resilience; healthcare infrastructure.

• New public sector projects pipeline at the local level.

The parties are expected to develop joint projects in the following areas: addressing the needs in municipal utilities, including water and wastewater, district heating; energy-efficient repairs of war-damaged public buildings and private houses; and reconstruction aimed at meeting the needs of local social infrastructure, including educational facilities and investments in healthcare infrastructure.

• Support for the private sector.

The EIB is considering the possibility to use guarantee for Ukrainian businesses, as well as additional financial instruments for private sector development in Ukraine. The Bank will also consider launching a guarantee facility to support direct foreign investment into Ukraine.

• Increase advisory support, including the deployment of JASPERS (Joint Assistance to Support Projects in European Regions) in Ukraine.

The EU JASPERS program will support the Government of Ukraine in preparing critical investments and strategies, as well as capacity building in priority economic sectors. In addition, support will be provided for the implementation of the Roadmap for reforming the public investment management system, as well as the project selection methodology. 

"Since the start of the full-scale russian invasion in 2022, cooperation between Ukraine and the EIB has markedly expanded. Today, the portfolio of joint projects in the public and private sectors is the largest in all the years of cooperation and reaches more than EUR 7 billion, and since the beginning of the full-scale war, the volume of EIB investments has exceeded EUR 2 billion. The mobilized funds were used to cover the country's most urgent needs, including the restoration of critical infrastructure and support for the energy sector. The signing of the Memorandum will aid in delineating the realms of future cooperation in the public and private sectors. The projects will focus, among other things, on recovery efforts and EU accession goals," said Minister of Finance of Ukraine Sergii Marchenko.