(MENAFN- UkrinForm) As reported by Ukrinform, this was stated in a press release published on the bank's website.

According to the release, the financing is part of a coordinated Team Europe effort backed by the EIB's EU for Ukraine Fund and the European Commission's €1.95 billion guarantee under the Ukraine Investment Framework, which is a part of the EU's €50-billion financial support program for Ukraine (Ukraine Facility).

It is noted that €70 million has been provided to Ukrgasbank to support Ukrainian businesses. These funds come as part of a €400-million credit package aimed at bolstering Ukraine's economic resilience.

“The financing will expand access to long-term loans for micro, small and medium-sized enterprises (MSMEs) and mid-caps across the country, helping to sustain employment and support the resilience of Ukraine's private sector,” the press release states.

In addition, the loan will support Ukraine's green transition by financing investments that reduce greenhouse gas emissions and increase energy efficiency.

Another €30 million will be allocated to restore and reinforce municipal district heating systems.

The first tranches - €15 million each - will be disbursed to Ukrgasbank and Ukreximbank within the EIB's district heating loans of €50 million and €100 million respectively.

The funds will be provided to municipalities and public utilities to repair and modernize district heating systems, improve energy efficiency in public buildings, introduce renewable energy solutions, and restore facilities damaged by Russian attacks. This support will help municipalities develop more independent and efficient heating systems for schools, hospitals and residential buildings.

“The disbursement of these funds ensures that support is now reaching Ukrainian businesses and municipalities at a critical time. It helps keep local economic activity going and enables communities to maintain heating and essential public services during the winter. We are working in close cooperation with the European Commission, the government of Ukraine, local partner banks and local authorities to make sure this assistance is delivered effectively and where it is most needed,” said EIB Vice-President Teresa Czerwińska.

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EU Commissioner for Enlargement Marta Kos noted that EU support is helping rebuild a stronger and more resilient energy system. The EU, he said, is helping restore power plants and is investing in district heating, renewable energy expansion and improvements in energy efficiency in buildings.

“Together we make sure schools, hospitals, and homes remain warm this winter,” Marta Kos assured.

The press release notes that this support complements the recently signed EIB financing agreement with Naftogaz of Ukraine aimed at replenishing gas reserves before winter. This highlights the EU's commitment to strengthening Ukraine's energy resilience during wartime, the EIB added.

As reported by Ukrinform, the Cabinet of Ministers of Ukraine has approved a resolution enabling the distribution and use of the second €100-million tranche of financing from the EIB under the Ukraine Recovery Programme III.

Photo: EIB

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