On Feb. 1, the European Union’s leaders agreed on €50 billion of “regular and predictable” financial support to Ukraine between 2024 and 2027.
This “Ukraine Facility” will materialize in “up to €50 billion in grants and highly concessional loans” made available by the European Commission.
While intended primarily for Ukraine to “keep its administration running, pay salaries, pensions, and provide basic public services, as it continues to defend itself against Russia’s aggression,” the funding may also contribute to supporting investment vehicles, including in the field of technology.
As noted by the Ukrainian Venture Capital and Private Equity Association (UVCA), “for the first time, up to €8 billion will go to the ‘Ukraine Investment Framework,’ a special program to attract both public and private investment.”
Through guarantees for investors and “blended financing (combining EU loans and grants), this framework will “greatly increase the interest and confidence of potential investors in Ukrainian projects.”
“In the future, the Ukraine Investment Framework can be used to fill the Fund of Funds, Ukrainian and international VC/PE funds, and other investment vehicles,” says the UVCA, which “expects real cases from this program.”
