EU launches new €1.6bn business initiative as part of Ukraine’s economic recovery programme

The European Union continues to expand its operations to assist Ukraine in recovery, this week launching a new financial initiative of 1.6 billion as part of the Ukraine Investment Fund (UIF) to support micro, small, and medium enterprises (SMEs) through partner banks.

This was reported by Minister of Economy Yulia Svyrydenko, writes UNN.

“What this means for business is reduced-risk loans for banks, making financing more accessible. Easing access to loans for enterprises operating in war-affected regions. Priority support for companies involved in demining, necessary for Ukraine’s recovery,” the statement said.

The terms of the new initiative within UIF, according to Julia Sviridenko:

50%+ of funding is directed to enterprises in war-affected regions, internally displaced entrepreneurs, veterans, or companies where they work;

75%+ of funding is designated for SMEs and 25% for SMEs+;

Up to 60% of grants for projects aimed at modernizing production, energy security, and enterprises affected by the war;

50%+ of funds must be used for capital investments.

After approval by the European Commission and the government, the new funding will be available in the second half of the year. Ukrainian enterprises can already contact partner banks to apply for future funding. These include PrivatBank, Oschadbank, Ukreximbank, Ukrgasbank, Raiffeisen Bank, Ukrsibbank, Kredobank, and Bank Lviv, with other partners joining soon.

Reminder

In 2024, Yulia Svyrydenko announced the start of a grant program for youth. At that time, 6 applications had been received, and an increase in the number of business projects was expected. The program is aimed at retaining youth in Ukraine.