• A €5 million investment grant from the E5P multi-donor fund will finance war-related emergency measures, especially in Ukrainian hospitals.
  • This grant supplements an ongoing €300 million energy efficiency loan from the EIB.
  • 43 Ukrainian communities are already participating in the programme, with more to follow.
  • Novoyavorivsk and Kovel are among the first cities to receive funding for energy efficiency upgrades.

The European Investment Bank (EIB), the bank of the European Union, and the Ministry for Communities, Territories and Infrastructure Development of Ukraine have concluded a new agreement to further facilitate the implementation of the Ukraine Public Buildings Energy Efficiency programme and contribute to much-needed energy efficiency and war-related emergency efforts, in particular within the healthcare sector. The cooperation agreement provides for a €5 million investment grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P), on top of a €300 million EIB loan. 

The €5 million grant will mainly support war-related emergency measures in Ukrainian hospitals. Since Russia’s full-scale invasion, the urgency to renovate and upgrade hospital and healthcare infrastructure has increased dramatically, highlighting the critical need for improved facilities to ensure adequate medical care and support for affected communities.

The €5 million from the E5P multi-donor fund, to which the EU is one of the largest contributors, brings its total grant contribution to €9 million, supplementing the EIB’s Ukraine Public Buildings Energy Efficiency programme. The €300 million EIB framework loan, €200 million of which was redirected to provide urgent support to Ukraine in 2022, is designed to finance thermal renovations, war damage repairs, and the conversion of public buildings across Ukraine. Currently, 43 Ukrainian communities are involved in the Ukraine Public Buildings Energy Efficiency programme, with Novoyavorivsk and Kovel being among the first to receive funding for energy efficiency upgrades.

Deputy Prime Minister for Restoration of Ukraine and Minister for Communities, Territories and Infrastructure Development of Ukraine Oleksandr Kubrakov said: “We are committed to the principle of 'building back better’ and are focused on using energy-efficient technologies in reconstruction. This aligns with our European aspirations, and we are grateful to our partners for their support, especially in modernising the healthcare sector. Increasing the grant component within the Ukraine Public Buildings Energy Efficiency programme will reduce the financial burden on communities, which is a pressing issue and a significant contribution to supporting community development during the ongoing escalation of military aggression by Russia.”

Head of the EIB Regional Hub for Eastern Europe Jean-Erik de Zagon said: “The reconstruction in Ukraine offers a good chance to focus on energy efficiency, a key factor in boosting the country’s resilience and sustainability. With the support of the committed donors from the E5P fund and through our Ukraine Public Buildings Energy Efficiency programme, the EIB is dedicated to helping Ukraine rebuild and improve the energy efficiency of public buildings, particularly hospitals, to ensure that they meet all standards of protection and sustainability during wartime and beyond.”

The EU Ambassador to Ukraine Katarína Mathernová said: “The European Union is proud to be among the main founders of the E5P Fund. EU-funded initiatives are assisting Ukraine in its reconstruction, emphasising emergency measures and energy efficiency. With the EU Neighborhood Investment Platform (NIP) grant of €5 million and the E5P grant, now amounting to €9 million after today’s top-up, the European Union and its financial arm, the European Investment Bank, are moving forward in implementing the Ukraine Public Buildings Energy Efficiency programme. I am glad as well that, as part of the NIP support, very small cities – below 50.000 inhabitants – are now receiving detailed technical designs documentation for free to enable them to join the Ukraine Public Buildings Energy Efficiency programme and achieve long awaited repair and upgrade of infrastructure”.

Jürgen Keinhorst, director at the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection, said: “Germany has been supporting E5P since 2014, and contributed €20 million in 2022 to the E5P fund in Ukraine for war-related emergency response measures, which remain a priority for us. We are grateful to be able to help with urgent assistance for Ukraine via the fund and greatly appreciate the engagement and commitment from all the E5P partners. It’s very encouraging to see that via E5P we can support municipalities in addressing the enormous challenges they face, especially in the social sector, for instance hospitals.”

Background information 

Present in Ukraine since 2007, the EIB has been unwavering in its support for the country’s EU integration, which has become even more vital since Russia’s full-scale invasion. With a portfolio of signed projects valued at €7.3 billion, the Bank has invested in municipal infrastructure, energy, transport and small businesses, all with the goal of improving daily life, boosting economic growth and supporting Ukraine’s resilience and reconstruction. The EIB provided immediate relief to Ukraine following Russia’s full-scale invasion in 2022, disbursing €2 billion of financing for emergency repairs to the country’s ravaged infrastructure.

Through the EIB’s EU for Ukraine Fund and the broader EU initiative, coupled with its key role in implementing the European Union’s €50 billion Ukraine Facility, the Bank remains committed to stepping up its activities in line with the mandate given by EU leaders and in close cooperation with the European Commission, the European Parliament, EU Member States and international partners.

About E5P

The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is a multi-donor and multi-international financial institution support fund created thanks to an initiative of the Swedish Presidency of the European Union in 2009. The E5P fund for Ukraine totals €240 million, representing pledges made by the European Union as the largest contributor to the fund and Sweden as the largest bilateral contributor supporting Ukraine, as well as Denmark, Estonia, Finland, Germany, Iceland, Ireland, Latvia, Lithuania, Norway, Poland, Slovakia, Switzerland and the United States. Ukraine is also a donor to the E5P, having contributed €20 million. The E5P grants are used alongside loans from international financial institutions to supplement municipal infrastructure investments to boost Ukraine’s energy efficiency, while also having a beneficial impact on the environment and combating climate change. Since Russia’s full-scale invasion of Ukraine, the E5P has also been supporting war-related emergency measures to sustain the operation of critical municipal infrastructure. To date, 27 investment projects have been supported by the E5P across Ukraine with a total investment volume of over €1 billion.