**EU Steps Up Support for Ukraine with $12 Billion Investment Plan**
In a major boost to Ukraine’s reconstruction efforts, the European Union has signed agreements with financial institutions to mobilize up to 10 billion euros (around $12 billion) in investments. This significant commitment was announced by European Commission President Ursula von der Leyen at the recent Ukraine Recovery Conference.
The agreements, worth 2.3 billion euros, are aimed at unlocking a much larger sum of investments to help rebuild homes, reopen hospitals, revive businesses, and secure energy for Ukraine’s struggling economy. The funds will come from loan guarantees (1.8 billion euros) and grants (580 million euros).
**New Fund Launched to Support Reconstruction**
At the conference, President von der Leyen unveiled a new European Flagship Fund for the Reconstruction of Ukraine. This initiative aims to mobilize 500 million euros by 2026 in private sector investment across key sectors such as energy, transport, and critical raw materials.
“This fund is a game-changer,” said von der Leyen, emphasizing that it will “literally take a stake in Ukraine’s future” by leveraging public money to attract large-scale private investments. The fund has Italy, Germany, France, Poland, and the European Investment Bank as founding partners.
**EU Pledges Ongoing Support**
The EU has been a key ally of Ukraine throughout the war, providing over $162 billion in financial, military, and humanitarian assistance since 2022. President von der Leyen reiterated that the EU will continue to support Ukraine until 2028 and beyond when the new European budget kicks in.
**Ukraine’s Path to EU Membership**
Ukraine applied for EU membership at the onset of Russia’s full-scale invasion in 2022, with the country achieving candidate status within months. The initial cluster of accession negotiations formally launched in June 2024. However, Hungary continues to block this process due to its pro-Russian stance.
**A Clear Message from von der Leyen**
In her remarks, President von der Leyen sent a clear message about Ukraine’s future: “For them (Ukraine), the future has two flags. The flags of Ukraine and the flags of Europe.” She emphasized that Ukraine is making quick progress with reforms and urged international partners to join the Ukraine recovery coalition.
This investment plan is a significant step forward for Ukraine, and it highlights the EU’s commitment to supporting the country’s reconstruction efforts. As President von der Leyen said, “We are literally taking a stake in Ukraine’s future.”
