EU and World Bank to Invest €500 Million in Ukraine's Reconstruction

The European Union (EU) and the International Finance Corporation (IFC), the private sector branch of the World Bank Group, have inked an agreement to invest €500 million in Ukraine's reconstruction efforts. The EU will provide up to €90 million in financial guarantees to support these investments through the IFC's Better Futures Program (BFP).

These investments, aimed at fostering an inclusive and sustainable reconstruction in Ukraine, are anticipated to attract more than €500 million from the private sector. The funds will be channeled into various sectors, including essential infrastructure, goods production, decarbonization initiatives, and the preservation of livelihoods.

In 2022, the IFC initiated the $2 billion Economic Resilience Action (ERA) Program to bolster Ukraine's private sector. Since its launch, the IFC has furnished over $650 million in financing and mobilized more than $400 million to support diverse sectors such as technology, agribusiness, critical trade, and small and medium-sized enterprise finance.

The European Commission emphasized that its cumulative support for Ukraine and its citizens has exceeded €88 billion since February 2022. This assistance encompasses economic, financial, military, and humanitarian aid, as well as hosting Ukrainian refugees within EU member states.