Ukraine mobilizes over €83 million from the European Investment Bank for urban development

In December, Ukraine received EUR 83.6 million in loan financing from the European Investment Bank (EIB) under six projects aimed at supporting urban infrastructure development. The funds were credited to the special fund of the State Budget of Ukraine.

In particular, financing was mobilized under the following projects: EUR 22 million for Higher Education in Ukraine; EUR 18.4 million for the Municipal Infrastructure Development Program; EUR 13.5 million for Modernization of Ukrainian Railways; EUR 14.4 million and EUR 10.2 million for Urban Public Transport of Ukraine and Urban Public Transport of Ukraine II, respectively; and EUR 5.15 million for Energy Efficiency of Public Buildings in Ukraine.

The funds will be used to develop cross-border railway crossings under the Connecting Europe Facility initiative, procure public transport rolling stock for Lviv, Dnipro, Ternopil, and Kremenchuk, and construct a transport depot in Lviv. In addition, the financing supports thermal modernization of public buildings, improvements in energy efficiency of dormitories and academic buildings of higher education institutions, as well as the development of communal and municipal infrastructure.

“Cooperation with the European Investment Bank plays a key role in the recovery and development of Ukrainian cities. It enables communities not only to rebuild critical infrastructure, but also to improve the quality of municipal services and implement modern, sustainable solutions even in times of war. I am grateful to the European Investment Bank for the additional support of over EUR 83 million, which is making Ukrainian cities more resilient and comfortable to live in, and Ukraine stronger and more modern,” said Deputy Minister of Finance of Ukraine Olga Zykova.

Since the start of the full-scale invasion, the EIB has already provided Ukraine with more than EUR 860 million under the above-mentioned projects. In particular, in 2025 alone, over EUR 52.5 million was mobilized to renew public transport rolling stock in Ukrainian cities, around EUR 31.4 million to develop communal and municipal infrastructure, and EUR 32.2 million to implement measures for thermal modernization of public buildings and to improve the energy efficiency of dormitories and academic facilities of higher education institutions. Overall, this year the Government of Ukraine has secured EUR 144.6 million in loan financing from the Bank.

The loans are provided under the European Union’s Ukraine Facility initiative, which envisages mobilization of financing backed by guarantees from the European Commission.

The European Investment Bank consistently supports the restoration of Ukraine’s critical infrastructure, including roads, railways, and bridges, as well as energy facilities, healthcare institutions, and social infrastructure. At the same time, the EIB finances long-term recovery projects, including the reconstruction of damaged public buildings.

As of December 2025, the EIB’s public sector loan portfolio in Ukraine comprises 27 active projects totaling EUR 4.7 billion, of which 22 projects amounting to EUR 4 billion are under implementation. The total volume of funds disbursed under these projects stands at EUR 3 billion.