The European Investment Bank (EIB) will provide two loans of EUR 50 million and EUR 70 million to state-owned Ukrgasbank (Kyiv) to finance energy independence projects for municipalities and support green growth of small and medium-sized businesses, as well as a new EU portfolio guarantee.
“Within the framework of the Ukraine Recovery Conference (URC) in Rome, UGB (Ukrgasbank) and the European Investment Bank (EIB) announced the signing of a multi-component financial package,” the bank said on Thursday.
It is noted that this will allow attracting additional financing for small and medium-sized businesses worth tens of millions of euros and has become one of the first significant results of the Ukraine Recovery Conference 2025 in Rome.
As part of the package, Ukrgasbank will allocate EUR 50 million to strengthen the energy independence of Ukrainian municipalities. The funds will be used to modernize the district heating infrastructure, develop decentralized heat generation, integrate renewable energy sources and improve energy efficiency of public buildings. The EU grant component will make this funding available to frontline communities.
Another EUR 70 million will be allocated to support the sustainability and green growth of small and medium-sized businesses. These funds will help businesses maintain operations, modernize and implement environmental solutions.
“This financing is further strengthened by a portfolio guarantee from the EU provided by the EIB, which will significantly increase Ukrgasbank’s ability to lend and raise critical capital for the private sector in the amount of more than EUR 31.25 million, even in wartime,” the bank added.
According to the National Bank of Ukraine, in April 2025, Ukrgasbank ranked fifth in terms of total assets (UAH 220.0 billion or 5.9%) among 60 banks operating in the country.
As reported, the European Investment Bank Group and the European Commission announced a new EU financing package of EUR 600 million at the Ukraine Recovery Conference.
