Ukraine will receive EUR 100 million from the CEB to compensate for the destroyed housing due to russian armed aggression: Minister of Finance and Governor of the Bank signed an agreement
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On June 11, on the sidelines of the Ukraine Recovery Conference (URC2024), Minister of Finance of Ukraine Sergii Marchenko and the Governor of the Council of Europe Development Bank Carlo Monticelli signed an agreement to provide Ukraine with a EUR 100 million loan under the "HOME: Compensation for Destroyed Housing" project.
The event was also attended by the Deputy Minister of Finance and representative of Ukraine to the Administrative Council of the CEB, Olga Zykova.
The HOME project will be implemented throughout the government-controlled territory of Ukraine. The funds raised will be used to support the direct assistance mechanism (housing certificates), through which the final beneficiaries, including war veterans, disabled people and multi-child families, will receive compensation for housing destroyed as a result of hostilities and russian terrorist attacks in the form of housing purchase certificates.
"russia's full-scale war has caused more than USD 50 billion in damage to Ukraine's housing sector. The HOME project will support the affected citizens in returning to a normal life as soon as possible. We are extremely grateful to the Bank for its ongoing support and solidarity with Ukraine. The further implementation and development of projects to support the social sector will contribute to sustainable social development and recovery," said Sergii Marchenko during the event.
The project is being implemented as part of the eRecovery service and by the current legislation, namely the Law of Ukraine "On Compensation for Damage and Destruction of Certain Categories of Real Estate as a Result of Hostilities, Terrorist Acts, and Sabotage Caused by the Armed Aggression of the Russian Federation against Ukraine."
“I am delighted to sign the first-ever lending agreement between the CEB and Ukraine. This is just the beginning. The CEB, as the social bank of Europe, is committed to supporting Ukraine’s long-term social development and social cohesion, as well as recovery and reconstruction. I look forward to continuing to work on the priorities identified by the Government by leveraging the CEB’s mission, expertise, and resources for the benefit of the Ukrainian people,” said CEB Governor Carlo Monticelli.
Citizens can submit requests and, as a result, receive compensation certificates for damaged property. A special Compensation Commission will verify applications and select requests. It will be possible to track the case's progress in the Diia app.
"Less than a year after Ukraine joined the CEB, we are already starting two important social projects financed by the Bank. This demonstrates the Bank's trust in Ukraine as a partner and commitment to support us in the face of the constant challenges of a full-scale war. I am convinced that our further cooperation will contribute to the successful implementation and development of new financial and loan programs in the social sector," Olga Zykova said.
In June 2023, Ukraine completed the accession process and became the 43rd member state of the Council of Europe Development Bank. On 7 November 2023, Deputy Minister of Finance Olga Zykova was appointed as the representative of Ukraine to the Administrative Council of the Council of Europe Development Bank (CEB) by the Decree of the President of Ukraine.