The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have launched a new Ukraine SME Recovery Programme to support small and medium-sized enterprises (SMEs), mid-cap companies and startups in wartime Ukraine. The programme, announced on 5 June 2026, combines €46 million in EU funding — €41 million in guarantees and nearly €5 million in technical assistance — with EBRD financing to mobilise at least €135 million for Ukrainian businesses, targeting at least 15 investment projects and directly assisting up to 34 startups.
The programme has two components. The first, a Risk Sharing Facility (RSF), uses EU guarantees to provide first-loss risk cover on a pari passu basis to both the EBRD and partner banks, enabling support for more complex investment projects affected by wartime uncertainty, limited collateral or insufficient sponsor equity. The second component expands the EBRD's Star Venture programme in Ukraine, offering tailored advisory support to high-potential startups, local accelerators and venture capital firms, helping early-stage companies cover operational and market development costs and improve their ability to attract commercial investment.
The initiative is backed by the EU's Ukraine Investment Framework (UIF). The EBRD, Ukraine's largest institutional investor, has significantly increased its support since Russia's full-scale invasion in 2022, focusing on energy security, private-sector resilience and critical infrastructure.
Stakeholder impact Ukrainian SMEs and startups stand to gain improved access to finance and advisory services, which could accelerate recovery and innovation. However, the programme's reliance on partner banks and risk-sharing may still leave smaller or more vulnerable firms unable to meet lending criteria. EU taxpayers provide the guarantee funding, with the expectation that the programme reduces long-term reconstruction costs by fostering private-sector resilience. The EBRD benefits from reduced risk exposure, enabling continued investment in a high-risk environment. Ukrainian partner banks gain additional confidence to lend, potentially expanding their loan portfolios.
Expected follow-up The programme is now open for applications through EBRD partner banks and the Star Venture initiative. The EU and EBRD are expected to monitor disbursement and impact, with potential expansion depending on uptake and wartime conditions.
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