EU bank announces new recovery funds for Ukraine
European Investment Bank (EIB) President Werner Hoyer visited Kyiv on Monday to discuss a multi-million dollar recovery initiative for Ukraine. It's his first visit there since the beginning of Russia’s invasion in February 2022.
Issued on:
According to an EIB press release, the initiative includes two loans totalling €450 million, recently approved by the EIB Board of Directors.
The EU for Ukraine Fund, part of the EIB's EU for Ukraine (EU4U) Initiative, which is spearheading efforts to Ukraine’s recovery and reconstruction agenda is backed by contributions from member states, totalling €500 million to date.
Hoyer also inaugurated the Kyiv-based EIB Regional Hub for Eastern Europe, which is coordinating construction efforts with similar outlets in Moldova and Tbilisi (Georgia).
According to the EIB website, the bank, which has been operating in Ukraine for 16 years, has a portfolio of projects adding up to €7.3 billion, "focusing primarily on transport, energy, and municipal infrastructure."
Hoyer's visit to Ukraine "is a demonstration of our unwavering support, especially amid Russia’s continued attack and atrocities," the bank said.
According to EIB Vice-President Teresa Czerwińska, who joined Hoyer in his Kyiv mission, the EIB has increased its engagement in Ukraine since the outbreak of Russia’s war with "€1.7 billion in emergency relief."
Obstacles
However the EIB Ukraine visit comes amid pressure from Hungary's Victor Orban, who has threatened to derail Brussel's Ukraine policy.
EU chief Charles Michel was set to meet Orban on Monday, an EU spokesperson said.
Hungarian prime minister was accused of preparing to use his veto power at a December summit to block fresh European aid to neighbouring Ukraine, in part to unlock funds for his own country.
As Ukraine presses its counteroffensive against Russia, Kyiv is awaiting further military support from the bloc, with which it hopes to open membership talks at the coming summit.
But Hungary, Russia's closest ally among the EU's 27 member states, has thrown up numerous roadblocks.
Last week, Orban wrote to Michel calling for "urgent discussion" on the bloc's overall strategy on Ukraine.
"The European Council is not in a position to make key decisions on the proposed security guarantees or additional financial support for Ukraine, endorse further strengthening of the EU sanctions regime or agree on the future of the enlargement process unless a consensus on our future strategy towards Ukraine is found," he wrote in his 16 November letter, obtained by French news agency AFP.
Orbán is standing in the way of a key €50 billion fund meant to guarantee EU aid for Kyiv for years to come.
❗️On Monday, @eucopresident @CharlesMichel will be travelling to Hungary for a bilateral meeting with @PM_ViktorOrban in preparation of the European Council.
— Ecaterina Casinge (@ecasinge) November 23, 2023
Funds frozen
Hungary was authorised Thursday to receive a €900 million ($980-million) advance from the EU as part of a €10.4 billion post-Covid pandemic recovery fund.
But disbursement of the bulk of that money has been suspended until Budapest meets several rule-of-law conditions.
Orban, who has repeatedly butted heads with Brussels over alleged democratic backsliding by his government and attempts to reform the EU's asylum policies, has recently launched a public campaign hostile to the commission.
In addition to freezing billions in the post-Covid recovery fund, Brussels has placed a hold on €22 billion in separate cohesion funds for Hungary until it can prove reforms have been taken to ensure the independence of judges, the rights of LGBTIQA+ minorities and the independence of academics.
Hungary has adopted some changes it claims meet demands related to the judiciary in a bid to receive €13 billion of that money.
(With newswires)
Daily newsletterReceive essential international news every morning
Subscribe