Rescuers working at a site of a strike following a mass Russian drone and missile attack on the Ukraine’s capital Kyiv, amid the Russian invasion of Ukraine on July 4, 2025. The European Commission announced a $2.7 billion fund to help Ukraine recover from war. Photo by State Emergency Service of Ukraine/UPI | License Photo
The European Commission on Wednesday announced a $2.7 billion package of agreements with financial institutions to support Ukraine’s recovery and reconstruction efforts.
European Commission President Ursula von der Leyen announced the European Flagship Fund for the Reconstruction of Ukraine at the Ukraine Recovery Conference in Rome.
“Today, the EU reaffirms its role as Ukraine’s strongest partner. Not just its top donor, but a key investor in its future,” President of the European Commission Ursula von der Leyen said. “With $2.7 billion in agreements signed, we aim to unlock up to $11.7 billion in investments to rebuild homes, reopen hospitals, revive businesses, and secure energy. This is solidarity in action. Ukraine is moving closer to the EU every day — in energy, education, roaming, and culture. Europe stands with Ukraine — today and tomorrow.”
The package includes $2.1 billion in loan guarantees and $677 million in grants. It is expected to mobilize up to $11.7 billion in investments in Ukraine.
“(It will be) the largest equity fund globally to support reconstruction,” she said. “It will, together with the private sector, kickstart investment in energy, transport, critical raw materials, dual-use industries. We are taking a stake in Ukraine’s future by leveraging public money to bring large-scale private sector investments and help the rebuilding of the country.”
Von der Leyen named as contributors Italy, Germany, France, Poland and the European Investment Bank. She said, “I trust others will be eager to join. The people of Ukraine are ready to drive their country’s economy into the future. The time to invest is now.”
Ukrainian Finance Minister Serhii Marchenko said on Wednesday that the country will need at least $40 billion in external financing in 2026 because it now allocates most of its budget to defense.
With an initial capital of $257 million, the fund plans to mobilize $584 million by 2026 – with further fundraising planned as security conditions improve, a press release said. The Flagship Fund will foster the developmzent of a private equity ecosystem in Ukraine to attract new capital and “maximize synergies with existing market players.”
