Ukraine Government Delegation visits the EIB – Agreement on EIB representative in Kyiv signed

Today, a Government Delegation from the Ukraine, led by Prime Minister Mykola Azarov and including Minister of Economy Vasyl Tsushko, met with EIB President Philippe Maystadt and EIB Vice-President Eva Srejber, responsible inter alia for EIB lending operations in EU’s Eastern Neighbours, including the Ukraine. Both parties discussed various aspects of cooperation between the EIB and the Ukraine, particularly current and future projects for EIB financing in the country.

During the visit Minister Tsushko and Vice-President Srejber signed the Host Country Agreement for EIB representation in the Ukraine. This agreement validates the EIB’s representation and activities in the country. It will improve the EIB’s response to the financing needs of public and private clients and strengthen cooperation with local institutions and partners in the Ukraine.

Background:

The EIB, the European Union’s bank finances projects in the Ukraine on the basis of an EU Council and European Parliament mandate for Eastern Partner Countries of EUR 3.7 billion for the period 2007-2013. There is no ex-ante allocation of the overall amount by country. This envisages financing projects that are of significant interest both to the EU and to the Ukraine in transport, energy, telecommunications and environmental infrastructure, as well as SMEs.

The EIB also has a facility for the Eastern Partners (Ukraine, Moldova, Georgia, Armenia, Azerbaijan and Russia), the Eastern Partners Facility, of an amount up to EUR 1.5 billion, with a ceiling of EUR 500 million for loans in Russia. This facility enables the EIB to provide loans that sector-wise go beyond the scope of the mandate and to help support EU investment in the region, notably through European corporates.

The EIB has so far provided loans in Ukraine totalling EUR 465.5 million, financing projects in the road infrastructure sector (EUR 200 million), energy sector (EUR 150 million), upgrading of water infrastructure (EUR 15.5 million) and indirectly through commercial banks projects of SMEs (EUR 100 million) . The pipeline of potential loans at various stages of due diligence or pending negotiation is currently in excess of EUR 1 bn.