This week, the European Investment Bank (EIB), the official lending arm of the European Union (and one of the world’s largest climate finance institutions), announced that initial disbursements from an emergency financial support package approved last week has been delivered to Ukraine. The bank also announced that it will scale up financing for European security and defense innovation and approved EUR 543 million (about $596 million) in business and clean energy investment.
“Russia’s brutal and illegal invasion of Ukraine has driven more than 2 million people out of the country and triggered a humanitarian and security emergency, unprecedented in Europe in recent generations.
The European Investment Bank is delivering rapid financial support to Ukraine to assist with urgent financing needs. In addition, the Board of Directors approved today (ed: Thursday March 9] the new EIB Strategic European Security Initiative to continue investment in the European dual-use technologies and civilian security infrastructure. To strengthen energy security and make Europe less dependent on fossil fuels, the EIB will work closely with the European Commission and EU member states to accelerate financing for renewables, energy efficiency and electricity networks. Today we also agreed new high-impact financing to help business to expand and increase clean energy use,” EIB President Werner Hoyer said in an official comment.
President Hoyer confirmed that the first two disbursements, totaling EUR 129 million (about $141 million) from an emergency financial support package of EUR 668 million (about $733 million) under EIB’s Ukraine Solidarity Urgent Response have been delivered. Further disbursements are scheduled for the coming days.
This initial support package will help Ukrainian authorities to meet most urgent financial needs by speeding up the disbursement under two loans originally granted to support SMEs and the agricultural sector in Ukraine.
The EIB’s rapid support for the war-torn country benefits from the EU guarantee under the External Lending Mandate and complements other initiatives announced by EU institutions.
This week, the EIB board also approved a new EIB Strategic European Security Initiative (SESI) to strengthen European security and defense by mobilizing investment in research, development and innovation (RDI), civilian security infrastructure, and cutting-edge technology projects.
Under the Strategic European Security Initiative EIB expects to approve EUR 6 billion (about $6.6 biillion) of new financing for such projects over the next 6 years.
The EIB’s Strategic European Security Initiative reflects new security challenges facing the European Union with cybersecurity and disruptive emerging technologies such as new space, artificial intelligence, or quantum technologies creating new vulnerabilities and threats. It will not change what is eligible for EIB financing or modify the definition of its excluded sectors. The EIB will not invest in weaponry and the EIB cannot finance investments in core defence.
The EIB also intends to further strengthen institutional cooperation with the European Commission (DG DEFIS), the EU Agency for the Space Program (EUSPA) and the European Defence Agency.
Finally, the EIB also agreed to EUR 543 million (about $596 million) in new financing to support business financing in Italy, corporate innovation and expansion of the Fira de Barcelona exhibition center, alongside clean energy investment.
Among these projects are a EUR 53 million (about $58 million) financing for a new solar powered large scale green hydrogen plant in Spain that will provide a clean energy alternative for energy intensive industrial production.
In 2021, the EIB funded nearly EUR 95 billion (about $104 billion) in projects, most concentrated within the European Union’s borders.
