In a landmark move to bolster Ukraine’s war-torn economy, the European Bank for Reconstruction and Development (EBRD) and the European Union have announced an expansion of their financial support programs. This initiative is expected to mobilize up to €2 billion in new lending, alongside hundreds of millions of euros in additional guarantees and grants for Ukrainian enterprises. According to the official announcement published on the EBRD website, this massive funding package is aimed at helping micro, small, and medium-sized enterprises (MSMEs) survive and modernize amidst the ongoing conflict.
As part of the expanded mechanisms, the EU is providing approximately €315 million in additional support. This includes €200 million in financial guarantees, €105 million in direct grants, and €10 million for technical assistance. Distributed through local EBRD-partner financial institutions, this capital injection will target at least 3,000 Ukrainian companies, securing approximately 180,000 jobs. Eligible businesses can also receive investment incentives as EU grants covering 10% to 30% of their green technology and capital upgrades. Crucially, half of these grant incentives are earmarked for vulnerable categories, including war-damaged businesses, enterprises in frontline areas, veteran-owned companies, and startups led by women and youth.
Alongside these measures, the Ukraine SME Recovery Programme has been launched. This joint initiative features €41 million in guarantees and €5 million in technical assistance under the Ukraine Investment Framework. It aims to mobilize an additional €135 million for investment projects and provide vital accelerator tools to at least 34 early-stage startups. By utilizing a Risk Sharing Framework, the program will allow local banks to issue long-term loans with lower risk barriers, helping businesses rebuild their destroyed capacities.
As Ukraine’s largest institutional investor, the EBRD has continuously scaled up its support for critical infrastructure, energy, and the private sector since 2022. This latest collaborative effort with the EU underscores a long-term strategic commitment to Ukraine’s economic sovereignty. By ensuring that local entrepreneurs have access to capital, the international community is laying a solid foundation for post-war reconstruction and sustainable green modernization.