The European Bank for Reconstruction and Development (EBRD), together with the European Union, has announced a major expansion of its support programme for Ukrainian businesses. The initiative will make it possible to mobilize up to €2 billion in new financing for micro, small, medium-sized and selected large companies through EBRD partner banks. The programme will be implemented thanks to an additional EU support package of €315 million provided under the Ukraine Investment Framework (UIF).
According to the EBRD, the new package includes €200 million in guarantees, €105 million in grant funding and €10 million in technical assistance. The programme is expected to provide access to credit resources for at least 3,000 Ukrainian enterprises and help preserve around 180,000 jobs.
Financing will be provided through Ukrainian banks and other financial institutions cooperating with the EBRD. The bank noted that the programme expansion is aimed at supporting businesses during the ongoing war, as companies face rising borrowing costs, disrupted logistics chains and the need to restore, replace or modernize damaged production assets.
One of the key elements of the programme will be the provision of investment incentives to Ukrainian companies in the form of European Union grants. Businesses will be able to receive compensation ranging from 10% to 30% of the cost of capital investments directed toward the purchase of critical equipment, production modernization and the implementation of energy-efficient or environmentally sustainable technologies.
Special attention will be given to the most vulnerable categories of businesses. At least 50% of grant funds will be allocated to enterprises affected by the war or operating under difficult conditions. This category includes companies with damaged or destroyed assets, businesses from frontline regions, veteran-owned enterprises, companies supporting the employment of internally displaced persons and people with disabilities, microenterprises, startups, small farms, as well as businesses led by women and young people.
A separate area of support will focus on Ukraine’s insurance market. The programme provides for the development of new war-risk insurance instruments and the launch of a pilot project to provide insurance subsidies for micro, small and medium-sized enterprises. This is expected to increase business investment activity and reduce risks for companies operating under wartime threats.
Part of the financing will be implemented through the Enterprise Security Enhancement (ESE) mechanism, which the EBRD is testing together with Ukrainian partner banks. The mechanism provides for the possibility of reducing the debt burden for companies whose assets have been affected by hostilities.
To support the operation of the ESE mechanism, the European Union is providing €200 million in first-loss guarantees, which will help compensate part of the credit risks related to the destruction or damage of borrowers’ assets. According to the EBRD, this should encourage banks to lend more actively to investment projects and support the continuity of business operations even amid elevated war-related risks.
The expansion of the programme follows the first stage of the initiative to restore financial inclusion for Ukrainian businesses, which demonstrated strong demand for financing among entrepreneurs. In May 2026, the EBRD began implementing the pilot ESE mechanism in Ukraine. In particular, a €6.8 million project was launched with state-owned PrivatBank, while a €1.2 million project was launched with Raiffeisen Bank. Both projects provide for partial debt write-off under investment loans in the event that financed assets are damaged as a result of hostilities.
The EBRD remains one of the largest international investors in Ukraine’s economy. In 2025, the bank provided Ukraine with a record €2.9 billion in financing, of which €1.2 billion was channelled through partner financial institutions. A further €504 million was allocated under portfolio risk-sharing programmes, enabling up to €1.6 billion in new lending to Ukrainian businesses. The new programme is expected to become an additional instrument to support economic activity, preserve employment and stimulate investment during the war and the country’s post-war recovery.
