The European Commission has initiated the first call for proposals under Pillar II of the €50 billion Ukraine Facility, aimed at driving Ukraine’s recovery, reconstruction, and modernization. This announcement follows the second meeting of the Steering Board of the Ukraine Investment Framework on September 20, 2024, where EU Member States approved the proposal.
Focus Areas for Investment
The call prioritizes investments across three key areas:
- Public Investment: Operations targeting public sector and sovereign entities, aligning with Ukraine’s public investment policies.
- Direct Private Investment: Collaborative agreements between implementing partners and private or commercial sub-sovereign entities.
- Private Equity Investment: Equity and quasi-equity funding for private initiatives, channelled through intermediated funds.
With an indicative budget of €2.75 billion in guarantees and blended finance grants, the call for proposals is open for 12 months. The first deadline for submissions is October 31, 2024, with a subsequent review planned for early 2025. Applications will be accepted on a rolling basis, ensuring flexibility for prospective participants.
Strategic Alignment and Collaboration
The call aligns closely with Ukraine’s national recovery and modernization strategy and emphasizes integration with the country’s reformed Public Investment Management System. A “Team Europe” approach is encouraged, promoting joint applications by European partners to maximize impact through shared expertise and resources.
Eligibility and Access
Eligible entities include implementing partners under the Ukraine Facility Regulation, pillar-assessed institutions such as:
- The European Investment Bank Group
- European Bank for Reconstruction and Development
- International Finance Corporation
- Council of Europe Development Bank
- National development banks and export credit agencies
Local authorities and companies interested in participating are advised to engage with relevant government ministries and agencies in their respective countries. Queries regarding the application process can be directed to: NEAR-EU-UKRAINE-INVESTMENT-FRAMEWORK@ec.europa.eu.
A Background on the Ukraine Investment Framework
The Ukraine Investment Framework is an essential component of the €50 billion Ukraine Facility, designed to attract both public and private investments for Ukraine’s post-war recovery. With €9.3 billion in financial instruments, including €7.8 billion in loan guarantees and €1.51 billion in blended finance, the framework aims to mobilize €40 billion in investments.
This initiative builds on the success of previous EU programs, such as the European Fund for Sustainable Development Plus (EFSD+) and the Neighbourhood Investment Platform. Its implementation is managed by European and multilateral financial institutions with established credentials.
Progress to Date
At the Ukraine Recovery Conference in Berlin in June 2024, European Commission President Ursula von der Leyen unveiled the first investment programs under the framework. The EU concluded agreements worth €1.4 billion in guarantees and grants to support Ukraine’s reconstruction efforts.
This ongoing commitment highlights the EU’s unwavering support for Ukraine’s path toward recovery, modernization, and sustainable growth, ensuring alignment with broader European policy goals.
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