An additional €200 million for reconstruction projects in Ukraine, the development of social housing programs, support for the private sector and industry, as well as France’s participation in privatization processes, were discussed during a meeting between Ukraine’s First Deputy Minister Oleksii Sobolev and the French President’s Special Envoy for Aid and Reconstruction of Ukraine Pierre Elbran, along with Rémi Rieu, the Director General of the French Development Agency (AFD).
Key topics included opportunities for cooperation within the framework of a new €200 million fund to support reconstruction and integration projects with the European market. The fund’s creation was announced during Ukrainian Prime Minister Denys Shmyhal’s visit to Paris in June.
Currently, the Ukrainian and French sides are discussing the joint work strategy within the fund, priority cooperation sectors, and project financing possibilities. It is expected that only part of the funding will come from the French budget, while co-financing will be provided by Ukrainian state or private companies, international partners, foreign funds, or governments.
The creation of the new fund continues the cooperation between Ukraine and France under an intergovernmental grant agreement worth €200 million, signed by the governments in July 2024. Within this framework, 19 projects in healthcare, infrastructure, energy, demining, and water supply have already been selected, which will be implemented by French companies in cooperation with Ukrainian businesses and communities. The allocation of the additional €200 million became possible due to strong interest from the French private sector: funding applications tripled, prompting France to expand the support program.
“France is an example for other countries in implementing various financial mechanisms for Ukraine’s recovery. The new financial support fund will allow us to implement projects not only in infrastructure reconstruction but also in other sectors. Moreover, this involves establishing new multilateral partnerships and attracting additional investments. Together, we can expand opportunities and attract even more resources for Ukraine’s recovery and economic growth,” emphasized First Deputy Minister of Economy Oleksii Sobolev.
The parties also discussed further cooperation with the French Development Agency (AFD), which has had an official representation in Ukraine for a year. Key cooperation areas include:
- financial support programs for public institutions and the private sector, including SMEs;
- ensuring access to affordable housing for Ukrainians, particularly through social housing programs;
- AFD support in implementing corporate governance reform and privatization;
- expanding investment protection mechanisms;
- assistance from France in providing equipment for industrial enterprises in cooperation with partner countries;
- preparation for the Ukraine Recovery Conference (URC2025) in Rome.
