The European Bank for Reconstruction and Development (EBRD) is providing a new €50 million loan to Kyiv, Ukraine's capital, to help maintain vital municipal services amid Russia's ongoing war, with 25 percent of the financing backed by an EU guarantee under the Ukraine Investment Framework. The loan, announced on 29 July 2026 by the EEAS press team, doubles the EBRD's previous lending to the city in 2024 and aims to address urgent liquidity needs caused by damage to energy infrastructure, increased service demand, and constrained municipal finances.
The financing will support Kyiv's municipal utility, Kyivteploenergo (KTE), in ensuring uninterrupted heating, electricity, and municipal services, 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. Additionally, the loan will enable the city to expand its veterans' assistance network across districts, handling up to 60,000 requests annually for rehabilitation, reintegration, employment, and social support.
Kyiv, home to around 3 million residents and approximately 400,000 internally displaced people as of end-2025, has seen its combined heat and power plants severely damaged in early 2026, disrupting heat and electricity to residential buildings and critical public facilities such as hospitals, schools, and kindergartens. The EBRD, Ukraine's largest institutional investor, has deployed €10.5 billion since the full-scale invasion began in 2022, focusing on energy security, private-sector resilience, and critical infrastructure.
The EU guarantee under the Ukraine Investment Framework is critical to enabling the transaction, providing first-loss risk cover that allows the city to address liquidity needs while maintaining essential public services. The loan supports both immediate humanitarian needs and longer-term energy resilience, with reliable heat and electricity seen as vital for public health, education, healthcare, economic activity, and enabling residents to remain safely in their homes through winter.