- The new EU grants include support for developing publicly owned social and affordable rental housing, backing water recovery and strengthening energy resilience.
- The grants will be managed by the EIB and complement the Bank’s related sector loans, guaranteed under the Ukraine Investment Framework of the €50 billion Ukraine Facility.
- Progress continues on the European Flagship Fund for the Reconstruction of Ukraine, which is expected to help mobilise equity financing for Ukraine’s long-term recovery.
The European Investment Bank (EIB), in cooperation with the European Commission and the government of Ukraine, announced more than €200 million in new EU grant financing to help restore Ukraine’s reliable water services, secure safe housing for communities across the country and reinforce energy resilience at the ReBuild Ukraine Conference in Warsaw today. These grants complement EIB-financed water recovery and social housing programmes as well as the EIB’s loan to Naftogaz Ukraine.
Both the new grants and the related EIB loans are backed by EU budget guarantees under the Ukraine Investment Framework, which forms part of the €50 billion Ukraine Facility and reflects the coordinated Team Europe effort to support Ukraine’s recovery and reconstruction.
Today’s announcements feature €75 million in EU grants to support the Ministry for Development of Communities and Territories of Ukraine in delivering EIB-financed projects. This includes €25 million to complement the ongoing EIB loan for water recovery, improving access to clean drinking water and modern wastewater treatment across the country. A further €50 million will support the EIB-approved social housing reconstruction loan, with the goal of developing a sustainable model and financing the construction of publicly owned social and affordable rental housing, particularly in communities hosting displaced people. In addition, a €127 million EU grant to Naftogaz Ukraine will complement the €300 million EIB loan signed and fully disbursed in October. This increased support will help secure strategic long-term gas reserves and strengthen the resilience of Ukraine’s energy system amid continued Russian attacks. Ensuring reliable access to energy is essential to keeping heating, electricity and public services running during the heating season. Naftogaz has committed to reinvesting an equivalent amount in renewable energy and decarbonisation. The EU grant has been made possible by financial support from Norway.
The EIB also welcomed progress in the rollout of the European Flagship Fund for the Reconstruction of Ukraine, an EU-backed equity initiative being developed with the European Commission, where the EIB is considering participation as an anchor investor alongside the governments of France, Germany, Italy and Poland and their development banks. The consultations with potential fund managers have now been completed, making it possible to move toward next stages of the fund’s establishment. Once operational in 2026, the fund is expected to play a key role in mobilising equity financing to support Ukraine’s reconstruction, economic development and path towards EU integration.
EIB Vice-President Teresa Czerwińska, who oversees the Bank’s operations in Ukraine, said: “Today’s support responds to urgent needs. By combining EIB loans with EU grants, we are helping Ukraine secure energy for the winter, keep water systems functioning and provide safe housing for displaced families. These are critical services for people’s daily lives, and at the same time, we are laying the groundwork for a more resilient and efficient infrastructure in the years ahead.”
European Commissioner for Enlargement Marta Kos said: “Russia wants to break the spirit of the Ukrainian people. The EU is making sure that does not happen. We are supporting Ukraine with investments in clean water, safe homes and a reliable energy system. These are the basics Russia is trying to take away. Our goal is to make sure people can live their daily lives while rebuilding and modernising their country.”
First Deputy Minister for Development of Communities and Territories of Ukraine Aliona Shkrum said: “Recovery is not only about walls and pipes – it’s about dignity. When every person has a roof over their head and access to clean water, we rebuild not just infrastructure, but trust and a sense of hope. EU grant support working alongside EIB financing will help us restore reliable water supply, expand affordable housing and sustain essential services in communities. It will also give Ukrainian municipalities the resources and predictability they need to plan repairs, manage growing needs and rebuild in a way that is stronger and more resilient for future generations.”
Chief Executive Officer of Naftogaz Ukraine Sergii Koretskyi said: “This is important and, above all, timely support that will help ensure stable gas supply during the heating season. We are grateful to the European Commission, and the government of Norway and the European Investment Bank. Special thanks go to the President of Ukraine and our government for making this assistance possible.”
Background information
The Ukraine Investment Framework (UIF) is part of the €50 billion EU Ukraine Facility designed to attract public and private investments for the recovery and reconstruction of Ukraine. It is endowed with financial instruments totalling €9.5 billion, with €7.8 billion in loan guarantees and €1.7 billion in blended finance. In March 2025, the EIB entered into a €1.95 million guarantee agreement with the European Union to support its operations in Ukraine. This guarantee is provided under UIF. The aim of the UIF is to mobilise €40 billion of investments for Ukraine’s recovery, reconstruction and modernisation.
The EIB in Ukraine
The European Investment Bank (EIB) has been working in Ukraine since 2007. Following Russia’s full-scale invasion in 2022, the Bank has stepped up its financial support to help strengthen the country’s resilience and rebuild its infrastructure. Since then, the EIB has provided €4 billion in financing for Ukraine. Through its EU for Ukraine (EU4U) Initiative, coupled with its key role in implementing the Ukraine Investment Framework, a dedicated window of the Ukraine Facility, the EIB is strongly committed to accelerating its activities in line with the mandate given by EU leaders, in close cooperation with the European Commission, the European Parliament, Member States and international partners.