The European Bank for Reconstruction and Development (EBRD) is lending an additional €50 million to Kyiv to help the Ukrainian capital maintain vital municipal services amid Russia's ongoing war, with 25 percent of the loan backed by an EU guarantee under the Ukraine Investment Framework. The financing, announced on 29 July 2026 by the EU Delegation to Ukraine, matches earlier EBRD lending in 2024 and aims to address urgent liquidity needs caused by wartime damage to the city's energy infrastructure.
Kyiv, home to around 3 million people and hosting approximately 400,000 internally displaced persons as of end-2025, has seen its combined heat and power plants sustain significant damage in early 2026, disrupting heat and electricity supplies to residential buildings and critical public facilities such as hospitals, schools and kindergartens. The loan will support the city and its municipal utility, Kyivteploenergo (KTE), in maintaining operations, retaining its workforce and carrying out urgent repairs ahead of the winter heating season. It will also help deploy decentralised cogeneration units that can operate independently during national grid outages, strengthening energy resilience.
Beyond energy, the EBRD and EU support will enable Kyiv to expand its veterans' assistance network across districts, strengthening 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, Ukraine's largest institutional investor, has deployed €10.5 billion since Russia's full-scale invasion in 2022, focusing on energy security, private-sector resilience and critical infrastructure.
The loan's EU guarantee is critical to the transaction, enabling the city and KTE to address liquidity needs while maintaining essential public services. The financing underscores the EU's continued commitment to Ukraine's energy security and municipal resilience under the Ukraine Investment Framework.