Estonia to contribute 10 mln euros to EU4U fund for Ukraine

MOSCOW. April 4 (Interfax) - The European Investment Bank (EIB) and Estonia have signed an agreement under which the latter guaranteed its contribution amounting to 10 million euros to the EU for Ukraine Fund (EU4U) designed to support recovery projects in the country, Ukrainian media have reported citing a statement on the official website of the EU Delegation to Ukraine.

"This 10-million-euro contribution, alongside those from other donors, plays a crucial role in bolstering Ukraine's resilience and in laying the groundwork for the country's EU membership. We have the expertise and resources necessary for Ukraine's urgently needed rehabilitation efforts, and contributions like this enable us to mobilize this support effectively," the statement cited Jean-Erik de Zagon, head of the EIB Regional Hub for Eastern Europe, as saying.

Estonia's contribution brings the EU4U Fund to 267 million euros, while the amount of pledged commitments exceeds 400 million euros, it said.

"On March 18, 2024, the Contributors' Committee of the EU4U Fund approved two additional projects amounting to 90 million euros in EIB lending, backed by guarantees from the fund," it said.

These projects are focused on rebuilding and rehabilitating damaged apartment buildings in Ukraine and improving essential export routes in need of urgent comprehensive repairs to maintain Ukraine's exports of agricultural and other products to the European Union, it said.

The EIB set up the EU4U fund in spring 2023 to quickly address urgent needs and sustain economic stability in Ukraine, focusing on supporting public and private projects chiefly in the municipal infrastructure sector and making financing available to Ukrainian entrepreneurs.