EU Introduces War-Risk Coverage to Encourage Investment in Ukraine

The European Commission and the European Bank for Reconstruction and Development (EBRD) signed two guarantee agreements totaling €363 million ($425 million) during the EU-Ukraine Business Summit in Brussels, Ukrinform correspondent reported on April 22.

Additionally, the Commission secured a €600 million ($702 million) agreement with the European Investment Bank (EIB) and a €95 million ($111 million) deal with Slovakia’s Eximbanka to bolster Ukraine’s power grid and infrastructure.

European Commissioner for Enlargement Marta Kos detailed the funding distribution, highlighting a new initiative designed to shield the private sector from the immediate physical threats of the ongoing Russian invasion of Ukraine.

“Today we signed two new guarantee agreements worth €363 million ($425 million) with the European Bank for Reconstruction and Development to support small businesses,” Kos stated. She explained that the program introduces an innovative policy to cover damages resulting from Russian aggression: “This means that EU guarantees will protect companies from losses caused by war-related destruction.”

Ukrinform wrote that, to maintain and rebuild state infrastructure, the €600 million ($702 million) EIB agreement will directly finance critical transport and energy projects, while the €95 million ($111 million) from Slovakian Eximbanka targets the stabilization of Ukraine’s battered electricity sector.

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Kos emphasized that these financial mechanisms are designed to encourage private capital to enter the country despite the Russian invasion.

“In short, this is a significant part of our EU support. It is about reducing the risks of investing in Ukraine for both Ukrainian and European companies,” she said, urging summit participants to utilize the new programs.

“Now is a good time to invest in Ukraine,” Kos concluded, adding that the country is rapidly becoming one of the most important strategic destinations for investment in Europe.

Ukraine formally applied for European Union membership in February 2022, just days after Russia launched its full-scale invasion, and officially received candidate status that June. Since signing the EU–Ukraine Association Agreement in 2014, Kyiv has been steadily aligning its regulatory and economic systems with European standards. Ukraine had already completed 84% of the required reforms under the agreement, making significant annual improvements in the financial sector, social policy, and customs.

While the government prepares to transition all future commitments to a new national adaptation program, the next major hurdle is opening formal negotiations across all six EU accession clusters—a process currently slowed by political roadblocks, including Hungary’s ongoing blockage of the core “Fundamentals” chapter.

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