Von der Leyen pledges €1.4B for investments in Ukraine
The European Union has signed agreements worth €1.4 billion with banks in a bid to attract private sector investment in Ukraine, European Commission President Ursula von der Leyen said at the opening of a two-day conference in Berlin on international support for the country's reconstruction, Politico reports.
"Our partner banks will be able to apply for EU budget support when they invest in equity funds active in Ukraine. And in that way, we the European Union help them remove some of the risks associated with equity investments," she said.
The agreements are meant to improve access to finance for Ukrainian businesses, von der Leyen said, mentioning startups in the IT, digitalization, critical raw materials and renewables sectors.
She also announced an additional €1.9 billion from the Ukraine Facility fund (the EU's financial assistance program) to be transferred to Kyiv by the end of June. "This is because of the comprehensive reforms and investment strategy that Ukraine has approved,” she said.
Among the high-ranking participants at the Berlin conference are Ukrainian President Volodymyr Zelenskyy, who is scheduled to hold a press conference with German Chancellor Olaf Scholz and address the country’s parliament later on Tuesday.
At the Berlin gathering, Kyiv officials will try to persuade international colleagues and private investors to finance the long-term recovery of Ukraine and the protection of the country's energy infrastructure, which has faced a barrage of Russian attacks. The World Bank estimated in February that the total cost of reconstruction and recovery in Ukraine will be $486 billion over the next decade.
