The Verkhovna Rada of Ukraine ratified the Grant Agreement between Ukraine and France regarding support for the recovery and maintenance of critical infrastructure and priority economic sectors in Ukraine. The agreement was approved by 265 deputies.
“Ratification of the agreements with France and Korea opens new opportunities for the restoration and development of critically important sectors of our economy. These agreements underscore the trust and support of our international partners. Thanks to the provided funding, we will be able to implement more infrastructure projects, strengthen energy security, and contribute to the resilience of our country in the face of war,” noted Ukraine’s First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko.
The ratification of the Grant Agreement will allow for the allocation of 200 million euros in grant funds from the French Government, which will be directed towards the reconstruction and restoration of critical infrastructure in sectors such as healthcare, agriculture, water supply and wastewater management, waste processing, demining, and residential construction. Of this, 60 million euros will support Ukraine's energy sector.
The implementation of the Grant Agreement will accelerate Ukraine’s recovery from the consequences of Russia’s armed aggression.
Additionally, a framework agreement between the Government of Ukraine and the Government of the Republic of Korea regarding loans from the Economic Development Cooperation Fund (EDCF) for 2024-2029 was ratified. The agreement was approved by 336 deputies.
According to the agreement, the Government of the Republic of Korea will provide loans from the EDCF amounting to 2.1 billion dollars for 2024–2029 to finance EDCF credit projects in Ukraine. These funds will be used for purchasing equipment and for recovery projects to be implemented by the state or Ukrainian businesses that receive government guarantees, as well as for financing the state budget.
The next step of the agreement involves prioritizing and approving projects. Conditions for each specific project will be defined in separate loan agreements, which will also specify the amounts and terms of concessional loans. Initially, according to the agreement, loans may be used for equipment procurement. From 2025, the possibility of using loans for infrastructure recovery projects is anticipated.
“Ratification of these agreements is another step towards strengthening Ukraine’s investment potential. The attracted grant and loan resources will be directed towards specific projects that will support not only state infrastructure but also create new opportunities for the private sector. This will contribute to job creation and attract additional investments in key sectors such as energy, agriculture, and digital technologies. We expect that these investments will have a long-term effect on economic development and the strengthening of the country's financial stability,” noted Ukraine’s Deputy Minister of Economy, Volodymyr Kuzio.
Background:
The Grant Agreement between the Government of the French Republic and the Government of Ukraine concerning support for the recovery and maintenance of critical infrastructure and priority economic sectors was signed in Paris. The agreement was signed by Ukraine’s First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko, and French Minister of Europe and Foreign Affairs, Stéphane Séjourné.
The agreement regarding EDCF loans was signed by Ukraine’s First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko, and the Ambassador of Korea to Ukraine, Kim Hyung, on September 13, 2023.
EDCF (Economic Development Cooperation Fund) is a fund established by the Government of the Republic of Korea to support the economic development of partner countries. The goal of EDCF is to promote sustainable economic growth in partner countries, improve living conditions, and create a favorable environment for the development of the private sector.
