- EBRD lends an additional €50 million to help Ukrainian capital Kyiv handle the impact of war
- Emergency liquidity supports continued functioning of vital municipal infrastructure
- Loan is 25 per cent backed by an EU guarantee under the Ukraine Investment Framework
The European Bank for Reconstruction and Development (EBRD) is doubling its support for Kyiv, Ukraine’s capital and one of Europe’s largest cities, with a new €50 million loan, matching earlier lending in 2024. The financing will help to ensure the uninterrupted delivery of vital municipal services and mitigate the impacts of the Russia's ongoing war on Ukraine.
The loan is supported by a first-loss risk cover guarantee from the European Union (EU) under its Ukraine Investment Framework, which will cover 25 per cent of the financing. The guarantee is critical to the transaction, enabling the city and its key municipal utility to address urgent liquidity needs while maintaining essential public services.
Kyiv, Ukraine’s capital and economic centre, is home to around 3 million people and was host to approximately 400,000 internally displaced people as at the end of 2025. Russia’s ongoing attacks on Ukraine’s energy infrastructure have severely affected the city’s heating and power systems. In early 2026, Kyiv’s combined heat and power plants sustained significant damage, disrupting heat and electricity supplies to residential buildings and hundreds of critical public facilities, such as hospitals, schools and kindergartens.
The EBRD loan will help the city and its municipal utility, Kyivteploenergo (KTE), address urgent liquidity needs caused by wartime damage, increased service demand and constrained municipal finances. The financing will support the uninterrupted provision of essential heating, electricity and municipal services, while helping KTE to maintain operations, retain its workforce and carry out urgent repairs ahead of the winter heating season.
The loan will also support the city’s efforts to strengthen energy resilience, including the deployment of decentralised cogeneration units that can operate independently during national grid outages. Reliable heat and electricity are critical to protecting public health, maintaining education and healthcare services, supporting economic activity and ensuring that residents can remain safely in their homes during the winter months. The EBRD and EU support will also enable the city of Kyiv to expand its veterans’ assistance network across its districts, strengthening its capacity to respond to up to 60,000 requests annually and improving access to rehabilitation, reintegration, employment and social support services for veterans, their families and other affected groups.
The EBRD is Ukraine’s largest institutional investor and has significantly increased its support since Russia launched its full-scale invasion in 2022. Since the start of the war, the Bank has deployed €10.5 billion to support the real economy, focusing on energy security, private-sector resilience and critical infrastructure.
Source: EBRD
