UGB (Ukrgasbank) and the European Investment Bank Group (EIB Group) — comprising the European Investment Bank (EIB) and the European Investment Fund (EIF) — have signed a new guarantee agreement under the EU4Business Guarantee Facility Ukraine initiative. This instrument will enable the bank to provide Ukrainian entrepreneurs with over €31 million in new financing to bolster their resilience and recovery.
A significant feature of the new agreement is the expansion of the pool of eligible recipients. In addition to traditional SMEs, support is now available for Labour Intensive SMEs — companies with up to 500 employees.
Within the programme, special attention is given to enterprises of high social importance. Specifically, the initiative supports:
- Businesses owned or managed by war veterans;
- Enterprises established or led by internally displaced persons (IDPs);
- Companies led by women or youth under the age of 36.
The programme also extends to businesses located in territories most affected by the war.
The guarantee mechanism covers between 30% and 80% of the credit risk for each transaction and applies to a wide range of financing types, including investment loans, working capital financing, and documentary operations — specifically bank guarantees and letters of credit. Loans will be provided for terms starting from 6 to 84 [MJ1] months in Hryvnia, Euro, or US Dollars.
For borrowers, the programme provides improved lending terms, including a significant reduction in collateral requirements, which significantly simplifies access for enterprises that may lack sufficient assets for traditional security but remain economically viable.
EIB Group Vice-President Teresa Czerwińska, who oversees the Bank’s operations in Ukraine, said:
“By working with strong local partners like Ukrgasbank, the EIB Group is helping ensure that vital financing reaches Ukrainian businesses when they need it most – supporting resilience today and recovery for the future.”
“This agreement is a powerful tool for supporting those who create jobs and support life in Ukrainian communities today. The programme's focus on labour-intensive enterprises, veterans, and IDPs fully aligns with Ukrgasbank’s priorities. Thanks to the high level of risk coverage from the EIB, we are making capital accessible even for companies whose assets were damaged by the war but who possess the will to work and develop for the sake of Ukraine's future,” noted Rodion Morozov, Acting Chairman of the Management Board of Ukrgasbank.
Entrepreneurs may contact Ukrgasbank branches for consultations and to submit financing applications under the EU4Business Guarantee Facility Ukraine.
The financing is made possible thanks to the support of the European Union under the Ukraine Facility programme.
