Estonia provides EUR 10 mln guarantee for EIB's EU for Ukraine Fund

  • 2024-04-04
  • BNS/TBT Staff

TALLINN – The European Investment Bank (EIB) and Estonia have signed a contribution agreement under which Estonia is providing 10 million euros to the EU for Ukraine Fund.

Launched by the EIB in 2023, this fund is a part of a larger EU for Ukraine (EU4U) initiative to address urgent needs and sustain economic stability in Ukraine, the Estonian Finance Ministry said in a press release.

The EU4U Fund supports critical recovery and reconstruction projects involving both the public and private sectors, and improves access to finance for entrepreneurs in Ukraine. To date, it has secured over 400 million euros in commitments from the majority of EU member states.

Estonia's Finance Minister Mart Vorklaev said that all the support given to Ukraine is an investment in the strength of our own democracy and the economy of Europe as a whole.

"The attacks by Russia have lasted for a long time and Ukraine alone cannot eliminate the results of military activity with its own resources. This is where we have to come together and help Ukraine, so that Ukraine can continue to repel the aggressor and at the same time rebuild its country," the minister said.

Jean-Erik de Zagon, head of the EIB Regional Hub for Eastern Europe, expressed his gratitude for Estonia's support for the EU for Ukraine Fund.

"This 10 million euros contribution, alongside those from other donors, plays a crucial role in bolstering Ukraine's resilience and in laying the groundwork for the country's EU membership. We have the expertise and resources necessary for Ukraine’s urgently needed rehabilitation efforts, and contributions like this enable us to mobilize this support effectively," he said.

Operations of the EU4U Fund are currently supported by contributions from ten donors: Belgium, Cyprus, Denmark, Estonia, France, Latvia, Lithuania, Luxembourg, the Netherlands and Spain. Further donors have made pledges and are expected to contribute to the fund in future.

The fund's first investment provided 25 million for euros Ukraine's equity growth fund to bolster small and medium businesses in Ukraine and Moldova.

On March 18, 2024, the Contributors' Committee of the EU4U Fund approved two additional projects amounting to 90 million euros in EIB lending, backed by guarantees from the fund. These projects will rapidly rebuild and rehabilitate damaged apartment buildings in Ukraine, and improve essential export routes in need of immediate, extensive repairs to maintain Ukraine's export of agricultural and other products to the European Union.