The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are expanding their support for micro, small and medium-sized enterprises (MSMEs) and larger companies in Ukraine, unlocking €2 billion of new lending through EBRD partner financial institutions. The package, announced on 5 June 2026, includes €200 million in guarantees, €105 million in grants, and €10 million in technical assistance from the EU under the Ukraine Investment Framework. It aims to reach at least 3,000 MSMEs and support around 180,000 jobs.
The new programme builds on the first phase of the Financial Inclusion Recovery Programme, which was fully deployed amid strong market demand. The expanded support includes EU investment incentives grants covering 10 to 30 per cent of eligible investment costs, with at least 50 per cent directed to priority MSMEs such as war-affected businesses, veteran-led enterprises, and women- and youth-led firms. A pilot project will also develop war risk insurance solutions for MSMEs.
A key innovation is the Enterprise Security Enhancement (ESE) mechanism, piloted with partner financial institutions in Ukraine. ESE allows banks to provide partial debt relief to borrowers whose assets have been damaged by the war, addressing a critical gap in wartime finance. The mechanism is expected to be supported under the €200 million first-loss risk cover guarantees provided by the EU.
The EBRD, Ukraine's largest institutional investor, has substantially increased its investment since Russia's full-scale invasion in 2022, focusing on energy security, private-sector resilience, and critical infrastructure. The programme is part of the EU's Ukraine Investment Framework, endowed with €9.5 billion in financial instruments under the €50 billion Ukraine Facility.
Ukrainian MSMEs gain access to much-needed financing and investment incentives, helping them sustain operations and modernise equipment. Partner financial institutions benefit from risk-sharing guarantees, enabling them to lend more confidently. The EU and EBRD strengthen Ukraine's private-sector resilience, supporting economic stability during the war. However, the programme's success depends on effective deployment through local banks and continued demand from businesses facing severe wartime challenges.