EU and IFC to Provide Ukraine with €100 Million in Guarantees for Investment in Reconstruction

The European Commission, together with the International Finance Corporation (IFC), has signed an agreement to provide Ukraine with guarantees amounting to €100 million to attract investments in state reconstruction projects. According to the Ministry of Development’s announcement, this agreement emphasizes that Ukraine remains attractive to investors even during wartime, and its economy maintains openness and modernity.

This is reported by AgroReview

Financial Support for Key Sectors

The provided funding will be directed towards investments in priority areas that are crucial for the country’s economic revival and development. The initiative is being implemented under the Better Futures – Resilience, Reconstruction and Regeneration of Ukraine (RE-Ukraine) program, launched by the European Commission as part of the global strategy Global Gateway. One of the program’s tools is the High Impact Equity Programme, which involves direct investments by the IFC in the capital of Ukrainian companies. This differs from previous approaches that were primarily based on lending and aims to strengthen investor confidence and accelerate the flow of funds.

Changes in the Banking System to Support Reconstruction

At the same time, the National Bank of Ukraine has announced updates to the requirements for banks’ mandatory reserve formation. This decision will encourage financial institutions to attract long-term deposits, which can be used to finance large-scale infrastructure reconstruction projects. The new approaches will also enhance the effectiveness of monetary policy in the context of martial law.

“This agreement is a clear signal from the EC and IFC that investments in Ukraine are possible even during war, and the Ukrainian economy remains reliable, modern, and open to the world.”