EIB approves financing of 1.59 bln euros for Ukraine - EC head

MOSCOW. July 25 (Interfax) - The European Investment Bank (EIB), with the support of the European Union budget, has approved financing for Ukraine totaling 1.59 billion euros, of which 1 billion euros will be provided immediately, European Commission President Ursula von der Leyen said on a social network.

"This will contribute to preserving and restoring the infrastructure and basic services. The funding will also strengthen Ukraine's resilience and help maintain the country's economic stability," von der Leyen said.

The financing will also support future energy, transportation, and educational projects, von der Leyen said.

According to a press release on the EC's website, guarantees from the EU budget are supporting the EIB funding to Ukraine.

"This is the second package of support for Ukraine under the EIB Ukraine solidarity urgent response developed in close cooperation with the European Commission. It follows an emergency support package of 668 million euros fully disbursed within a month. Like the first one, the new financing is offered at favorable terms, including long tenors," the EC said in the press release.

"Immediate financial assistance totaling 1.05 billion euros will consist of upfront disbursements under eight existing finance contracts. It will help the Ukrainian government to cover priority short-term financing needs, provide support to strategic state-owned companies, ensure urgent repairs of damaged infrastructure, resume the provision of disrupted municipal services, and support urgent energy and energy-efficiency measures in preparation for the cold season," according to the press release.

"Resuming implementation of the EIB-financed projects in Ukraine totaling 540 million euros, the selected projects will cover energy, energy efficiency, roads, transport, education, and infrastructure, as well as reconstruction and recovery programmes. The exact timing of the disbursements will depend on the state of advancement of the underlying projects," according to the press release.