The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are expanding their support program for micro, small, and medium-sized enterprises (MSMEs) and larger companies in Ukraine, which will enable the mobilization of EUR2 billion in new financing through EBRD partner banks thanks to EUR315 million in additional EU support, the financial institution announced on its website.
The additional EU support is being implemented through the Ukraine Investment Framework (UIF) program and includes EUR200 million in guarantees, EUR105 million in grants, and EUR10 million in technical assistance.
As noted in the press release, the new package is expected to provide loans to at least 3,000 MSMEs and preserve approximately 180,000 jobs.
Funds will be provided through the EBRD’s partner financial institutions in Ukraine. According to the bank’s assessment, the expansion of the program should support businesses’ access to financing amid the war, particularly against the backdrop of rising borrowing costs, disrupted logistics, and companies’ need to replace or modernize damaged equipment.
Ukrainian companies will be able to receive investment incentives in the form of EU grants to cover 10% to 30% of the cost of critical capital investments, primarily in high-efficiency and “green” technologies.
At least 50% of these grant incentives will be directed toward priority categories of MSMEs: enterprises with assets damaged or destroyed as a result of the war, businesses in frontline zones, veteran-owned companies, enterprises supporting the reintegration of internally displaced persons and people with disabilities, micro-companies, startups, small farms, as well as businesses led by women and young people.
The program also provides for support to restore activity in Ukraine’s insurance market, specifically the development of solutions for insuring military risks. As part of a pilot project, insurance subsidies are planned to be provided to MSMEs.
Part of the expanded support will be implemented through the Enterprise Security Enhancement (ESE) mechanism, which the EBRD is rolling out on a pilot basis in collaboration with partner financial institutions in Ukraine. It allows banks to reduce the debt burden for borrowers whose assets have been damaged by the war.
To implement this mechanism, it is planned to use EUR 200 million in first-loss guarantees provided by the EU as part of the new phase of the program. Such coverage of credit risk associated with the loss of assets due to the war is intended to support lending for capital investments and the continuity of economic activity.
This support builds on the first phase of the Financial Inclusion Recovery Program, which confirmed significant demand from Ukrainian businesses for financing through partner banks.
As reported, in May the EBRD launched a pilot ESE donor mechanism in Ukraine to partially write off business debt on investment loans in the event of damage to financed assets resulting from hostilities: with PrivatBank—in the amount of EUR 6.8 million, and with Raiffeisen Bank—EUR 1.2 million.
In 2025, the EBRD allocated a record EUR2.9 billion in financing to Ukraine, including EUR1.2 billion through partner financial institutions, as well as EUR504 million under portfolio risk-sharing programs, which facilitated new lending of up to EUR1.6 billion.
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are launching the “Ukrainian SME Recovery” program, which is expected to provide approximately EUR135 million in financing and advisory support for small and medium-sized enterprises, larger companies, and startups in Ukraine, the financial institution announced on its website.
EU support under the program is being implemented through the Ukraine Investment Framework (UIF) and amounts to EUR46 million, including EUR41 million in guarantees and approximately EUR5 million in technical assistance.
According to the announcement, the program provides for financing at least 15 investment projects by Ukrainian companies, as well as advisory support for up to 34 startups.
The first component of the program will be implemented through the EBRD’s Risk Sharing Framework (RSF) in collaboration with partner banks. EU guarantees will be used to cover the first-loss risks of the EBRD and partner banks on a parity basis.
According to the bank’s assessment, this will expand Ukrainian companies’ access to long-term financing, particularly for the restoration and expansion of production assets and capacity.
The second component involves expanding the EBRD’s Star Venture program in Ukraine, aimed at supporting high-potential startups and developing an innovative ecosystem.
Under this initiative, selected startups, accelerators, and venture capital firms will receive advisory support. The funding is intended to help early-stage companies cover operational and market development costs and enhance their readiness to attract commercial investment.
The EBRD is the largest institutional investor in Ukraine. Since the start of Russia’s full-scale invasion in February 2022, the bank has allocated nearly EUR10 billion to Ukraine.
Sweden has announced that it will provide Ukraine with $200 million in direct budget support in 2026 to help meet the daily needs of citizens in the midst of the war, Ukrainian Foreign Minister Andriy Sybiga said.
“This funding will meet the daily needs of people in the midst of war, including critical public services, energy supplies, healthcare, schools, pensions, and other payments. We are deeply grateful to Sweden for its determination, support, and unwavering solidarity,” Sibiga said in a post on social media on Saturday.
According to him, Sweden has shown leadership from the very beginning: in August, it became the first country to provide Ukraine with $75 million in direct budget support, and now it is reinforcing that leadership with an additional contribution.
The Law “On the State Budget of Ukraine for 2026,” which the Verkhovna Rada adopted on December 3, provided for an increase in expenditures to support the agricultural sector by almost 47% compared to the previous year, or by UAH 4.5 billion, to UAH 14.1 billion, according to the Ministry of Finance.
According to the report, the 2026 state budget provides for UAH 9.5 billion to finance subsidies per hectare for frontline territories, insurance of agricultural products, and UAH 0.2 billion of this amount for irrigation/land reclamation.
The 2026 state budget provides for support for farmers (loans, subsidies per 1 hectare, subsidies for cows, goats, and sheep) in the amount of UAH 2.6 billion. The government has allocated UAH 2 billion for the humanitarian demining of agricultural land.
In addition, the state budget provides for the replenishment of the “Affordable Loans 5-7-9%” entrepreneurship development fund with UAH 18 billion, the innovation fund with UAH 7.4 billion, and business support programs with UAH 4.9 billion to support business. UAH 1.9 billion and UAH 0.6 billion will be allocated to the decarbonization and energy efficiency fund, respectively.
Ukrainian Foreign Minister Andriy Sybiga received Ole Egberg Mikkelsen, Ambassador Extraordinary and Plenipotentiary of the Kingdom of Denmark to Ukraine, who is ending his diplomatic mission in Ukraine after five years of service.
According to the press service of the Ukrainian Foreign Ministry, Sibiga expressed his gratitude to Ole Egberg Mikkelsen for his personal commitment to the Ukrainian-Danish partnership and noted that the ties between Ukraine and Denmark established during his tenure go far beyond official relations.
“Denmark has become a world leader in terms of aid to Ukraine as a percentage of GDP (2.89%) and has provided our country with more than €9.9 billion in support. In addition, Denmark’s unique partnership with Mykolaiv and the Mykolaiv region has become a model of regional cooperation for other international partners. We greatly appreciate this,” Sibiga said.
The minister also noted the recent launch of the long-term humanitarian support program Ukraine Transition Programme and unprecedented military assistance, namely Denmark’s transfer of its entire artillery arsenal, the provision of F-16 fighter jets, and the launch of the Danish model of direct investment in the Ukrainian defense-industrial complex.
The interlocutors discussed the further development of relations between Ukraine and Denmark on the path to a just peace and the restoration of security in Europe.
The Foreign Minister wished Ole Egberg Mikkelsen success in his new endeavors.
Finland has announced a new package of military assistance to Ukraine worth approximately EUR143 million.
“Finland continues to provide strong support to Ukraine. The new support package includes the first tranches of a €660 million order program from Finnish defense companies,” Defense Minister Antti Hakkänen wrote on social media site X.
He emphasized that with this support program, Finland is helping Ukraine defend itself.
According to a statement on the Finnish Defense Ministry’s website, a new aid package to Ukraine worth approximately EUR143 million is currently being prepared for approval by the Finnish government and president.
To date, the total value of defense equipment supplied by Finland to Ukraine is EUR2.8 billion.
