The European Investment Bank (EIB), the financial backbone of the European Union, has committed to expediting the allocation of over 560 million euros ($595.90 million) to bolster Ukraine's reconstruction endeavours this year.
In a concerted effort between the EIB and the Ukrainian government, a new memorandum of understanding (MoU) has been inked, aiming to speed up the deployment of financial aid and project implementation within Ukraine.
Amidst escalating tensions in its ongoing conflict with Russia, Ukraine has voiced dissatisfaction over the slow utilisation of pledged financial assistance from Western allies, amounting to tens of billions of dollars and euros.
"The memorandum signed today underscores the urgent need for the swift execution of ongoing EIB projects in Ukraine," stated the joint release issued subsequent to the MoU signing ceremony, attended by Ukrainian Prime Minister Denys Shmyhal and EIB President Nadia Calviño during the International Monetary Fund (IMF) meetings in Washington.
Of the pledged support, Ukraine stands to access 500 million euros in EIB loan funds and an additional 60 million euros in EU grants for the current fiscal year.
Moreover, the EIB has earmarked a minimum of 2 billion euros from the EU's 50 billion euro "Ukraine Facility" fund for critical public sector initiatives within the country. These initiatives encompass the refurbishment of housing, schools, and hospitals, as well as the restoration and modernisation of Ukraine's ailing power grid and railways.
Part of the allocated funds will contribute to ongoing reconstruction efforts for the current year. Furthermore, the MoU facilitates access to Europe's advisory services programme, JASPERS (Joint Assistance to Support Projects in European Regions), previously deployed in Greece following its economic downturn nearly 15 years ago.
In Ukraine's context, JASPERS will play a pivotal role in preparing substantial investments and enhancing capabilities to meet the rigorous standards set by the EU.
(Source: Reuters)
