(MENAFN) At Thursday’s Ukraine Recovery Conference in Rome, the European Union announced a major increase in both political and financial backing for Ukraine, unveiling a strategy aimed at mobilizing up to €10 billion (approximately $11.7 billion) in new investments to drive the country’s reconstruction and long-term development.

European Commission President Ursula von der Leyen and European Council President Antonio Costa introduced a set of new initiatives, reinforcing the EU’s unwavering support for Ukraine as Russia’s full-scale invasion enters its fourth year.

Von der Leyen revealed the launch of a major new vehicle for private investment: the European Flagship Fund for the Reconstruction of Ukraine. Developed jointly with Italy, Germany, France, Poland, and the European Investment Bank, the fund is designed to attract large-scale private sector investment in critical areas such as energy, transportation, raw materials, and dual-use industries.

"We are literally taking a stake in Ukraine's future by leveraging public money to bring large-scale private sector investments and to help rebuild the country," she said.

She also emphasized that the EU is leading global efforts to financially sustain Ukraine.

"This year alone we will cover 84% of Ukraine's external financing needs."

In addition to the new fund, von der Leyen announced a €1 billion (around $1.17 billion) macro-financial assistance payment and the disbursement of over €3 billion (approximately $3.5 billion) from the Ukraine Facility.

Costa commended Ukraine’s persistent diplomatic efforts amid unrelenting Russian attacks, asserting that the EU would continue to apply sanctions, deliver defense support, and pursue diplomatic solutions to achieve a just and lasting peace.

Both von der Leyen and Costa reiterated their commitment to Ukraine’s EU accession process. Costa confirmed that Ukraine had met the required benchmarks to begin the first cluster of accession negotiations, calling on EU leaders to proceed without delay.

In a separate written communication, the European Commission unveiled an additional €2.3 billion (roughly $2.7 billion) financial aid package. The support includes €1.8 billion ($2.1 billion) in loan guarantees and €580 million ($680 million) in grants, which are expected to unlock critical investments across sectors such as energy, infrastructure, and small businesses.

"It is expected to mobilise up to €10 billion in investments in Ukraine," the statement read.

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