Ukraine to receive $1.62 billion from European Investment Bank

The European Investment Bank (EIB), with the support of the EU budget, has approved financing for Ukraine in the amount of 1.59 billion euros [$1.62 billion], of which 1 billion euros [$1.02 billion] will be provided immediately.

European Commission President Ursula von der Leyen made the statement on social networks, Interfax reports.

"This will contribute to the preservation and restoration of infrastructure and basic services. Financing will also strengthen the stability of Ukraine and help maintain the economic stability of the country," the EC president said.

According to her, this funding will also support future energy, transport and educational projects.

A press release on the European Commission's website states that the EIB's financing is supported by guarantees from the EU budget.

"This is the second package of support for Ukraine from the EIB, developed in close cooperation with the European Commission. It follows an emergency aid package of 668 million euros [$682 million], which has been fully paid. Like the first one, new financing is offered on favourable terms for a long time," the report says.

According to the press release, immediate financial assistance totalling 1.05 billion euros will consist of advance payments under eight existing financial contracts, which will help the Ukrainian government to cover priority short-term financing needs, support strategic state-owned companies, provide infrastructure repairs, resume the provision of municipal services, as well as support measures in the energy sector in preparation for the heating the season.

The second part of the package involves the resumption of EIB-funded projects in Ukraine totalling 540 million euros [$551 million].

"The selected projects cover energy, energy efficiency, roads, transport, education and infrastructure, as well as reconstruction programs. The exact timing of these payments will depend on the degree of promotion of the basic projects," the press release says.