EIB and World Bank join forces with new agreement to support Ukraine
9 October 2015
The European Investment Bank (EIB) and World Bank (WB) today signed an agreement under EU guarantee that aims to facilitate the purchase of gas by Ukraine’s national gas company, NJSC Naftogaz.
The agreement was signed today by EIB President Werner Hoyer and World Bank Group President Jim Yong Kim. The EIB will guarantee up to USD 520 million of selected World Bank loans in Ukraine, which will enable the World Bank to guarantee letter of credit facilities for gas purchases by Naftogaz. Today's agreement was facilitated by a counter-guarantee of the European Union granting comprehensive cover to the EIB linked to risks of these selected WB loans in Ukraine.
EIB President Werner Hoyer commented: “European and global institutions are committed to helping Ukraine avert a potentially severe energy crisis as winter approaches.The guarantee agreement we signed today will facilitate Ukraine’s purchase of gas at a critical time. The deal reflects the EIB’s enduring support for Ukraine as part of EU cooperation with the country and the Union’s Eastern Neighbourhood region.”
“The new agreement is part of our broad support to the restructuring of the gas sector in Ukraine and it will contribute to adequate gas supplies for the next three years,” said Jim Yong Kim.“The World Bank Group is committed to continue supporting Ukraine’s ambitious reform program and we are pleased to work jointly with the EIB.”
The new agreement is part of the support for Ukraine by the European Union and international financial institutions, under which the EIB guarantees World Bank investment development projects in Ukraine. The EIB guarantee is structured under the 2014-2020 External Lending Mandate and benefits from the EU comprehensive guarantee.
The European Investment Bank, the bank of the European Union, invested €554 million in 2021 in developing Ukraine`s transport infrastructure, urban mobility, education infrastructure, and the local economy, including support to increase COVID-19 resilience. Ukraine remained the main recipient of EIB funding among the countries of the Eastern Neighbourhood, having received more than 60% of all EIB lending in the region.
The Vice-President of the European Investment Bank (EIB) Teresa Czerwińska and the acting Managing Director of EIB Global, Markus Berndt, spoke at the Ukraine Recovery Conference in Lugano and shared the EIB’s views on Ukraine’s recovery. They reaffirmed the EU Bank's steadfast position on the importance and urgency of investing in Ukraine's European future, even as fighting continues across the country. Emphasising its support for the recovery plan presented at the conference, the EIB offered a new instrument, the EU-Ukraine Gateway Trust Fund. This financing instrument could support Ukraine’s early and long-term recovery and the country’s journey towards EU membership.
Today in Brussels, the EIB and the European Commission announced the latest set of loans, totalling approximately EUR 600 million, as part of the European Union's commitment to Ukraine made in March 2014.