Yahoo Finance EU unveils €1.4B plan to boost Ukraine's economy
The European Union, together with partner European banks, is creating a €1.4 billion ($1.5 billion) financial program to attract foreign capital investment to Ukraine, European Commission President Ursula von der Leyen said on June 11.
The bloc provides Ukraine with substantial financial assistance within the framework of the budget-funded Ukraine Facility in the amount of €50 billion ($54 billion), the official said during the Ukraine Recovery Conference in Berlin, news agency Ukrinform reports.
"Here in Berlin, we are signing the first agreement worth €1.4 billion with our partner banks to attract investment in Ukraine from our private sector," the head of the European Commission said.
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“We will also launch targeted support for capital investment in Ukraine. In this way, we, the EU, will help them (investors) to eliminate some of the risks associated with capital investments.”
The goal of such efforts is to improve access to finance for Ukrainian businesses, especially in terms of investments in small and medium-sized enterprises, as well as in "startups" that can help modernize Ukraine's economy, in particular in areas such as IT and digitalization, renewable energy and the production of critical raw materials.
"We will start with pilot projects to address the most pressing needs, and these projects can be expanded over time," said von der Leyen.
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“I know that the business community would like to increase its contributions. Together, we can mobilize financial power to help Ukraine resist (aggression - ed.) and recover.”
The €50 billion Ukraine Fund, which was created in the EU's 2024-2027 multi-annual budget, is backed by a solid reform and investment plan presented by the Ukrainian government, and this plan is already being implemented, the Commission head stated. Under the Ukraine Facility, Kyiv has already received €6 billion ($6.4 billion) from the EU.
The first €1.5 billion ($1.6 billion) of proceeds from frozen Russian assets are planned to be transferred to Ukraine in July, according to European Commission President Ursula von der Leyen.
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