How is the European Investment Bank helping to protect energy infrastructure from Russian strikes? Interview with EIB Vice-President Negammer

The European Investment Bank (EIB) is one of Ukraine’s key financial donors, continuing to provide multi-billion euro assistance throughout the full-scale war. Today the EIB is already directly financing dual-use technologies, including drones, and anti-drone protection for Ukrainian substations.

Whether the bank is ready to cross the “red line” and allocate funds for lethal weapons, which infrastructure projects the already announced sums will go towards, and what reforms foreign investors expect from Kyiv — EIB Vice-President and former Chancellor of Austria Karl Negammer speaks about this in an interview with RBC-Ukraine.

Key points:

• URC-2026 package: the EIB has allocated more than €470 million for logistics, the restoration of border roads, and the modernisation of western border crossing points.
• Infrastructure protection: the Bank has directed €86 million towards the construction of anti-drone systems for Ukrenergo electricity substations.
• Defence industry financing: investments are going into dual-use technologies (including Quantum Systems drones), but the priority is infrastructure protection and resilience support.
• Business support: €170 million has been allocated to enterprises for green projects, and a war risk insurance programme worth €300 million has been launched.
• Investor requirements: to attract private capital, European businesses are waiting for reform of the courts, the tax system, and a reduction in corruption risks.

— At URC-2026 in Gdańsk, the organisers placed emphasis on investment-ready projects. Which financial agreements were concluded with your involvement?

— At this year’s Ukraine Recovery Conference — URC-2026 — we announced a new support package for Ukraine worth more than €470 million. It covers investments in social housing, transport connectivity, water infrastructure, and the private sector. A significant portion of this package is directed towards strengthening Ukraine’s logistical links with the European Union.

In particular, we are providing a €96 million loan for the restoration of roads, bridges, and border infrastructure. These investments will facilitate trade with Ukraine and deepen its economic ties with the European Union — through the EU’s so-called “Solidarity Lanes.”

In addition, together with the European Commission and the Government of Ukraine, we are launching the Security and Connectivity Initiative. It will help identify the next priority investments in transport, energy, and digital infrastructure needed for Ukraine’s further convergence with the EU.

The first practical outcome of this initiative will be a new project to finance the modernisation of western border crossing points on Ukraine’s border with EU countries and Moldova.

— This year, security was for the first time discussed as a separate topic at the conference. Is the EIB now ready to provide funding not just for the repair of energy facilities, but also for their reliable protection against Russian missiles and drones?

— We are already financing projects that strengthen the resilience and security of critical infrastructure.

In particular, we have provided around €86 million to NPC Ukrenergo for the construction of anti-drone protection systems at critical electricity substations. This helps ensure uninterrupted electricity supply despite ongoing Russian attacks.

Under our recovery programmes, we are also financing the construction of shelters in schools and kindergartens. This helps keep children safe and support the continuity of the educational process.

This is precisely the approach we will continue to apply in supporting Ukraine’s reconstruction.

— During your recent visit to Ukraine, you visited a number of cities where EIB projects are being implemented. Recently, the Ministry of Finance of Ukraine announced that the EIB plans to allocate €600 million for recovery projects in 2026–2027.

Is this funding figure final? And most importantly, which projects do you consider priorities: will this money go towards plugging gaps in the budget, or towards specific strategic infrastructure facilities such as bridges or railways?

— We are at various stages of preparing the projects we are considering for financing. This figure was the one that the Ministry of Finance of Ukraine decided it was appropriate to make public. The EIB will continue to work with a broad project portfolio.

Our priority is to invest in projects that improve people’s everyday lives while at the same time strengthening Ukraine’s long-term recovery and its path towards the European Union. This means schools, hospitals, housing, water and energy infrastructure, roads, railways, public transport, and Ukrainian businesses.

A good example is our support for Ukraine’s railway network. We are financing the country’s first standard-gauge line, which has allowed trains to cross the border without delays for bogie exchange or cargo transhipment, making connections with Slovakia, Hungary, and the broader EU rail network faster and more efficient.

We are also supporting the implementation of the 112 emergency response system, which brings together ambulance, police, fire, and gas services under a single number in line with EU standards.

These are precisely the kinds of investments we will continue to support in the years ahead.

— The EIB is a key financial partner of the EU’s Ukraine Facility programme. How do you assess the current pace of project implementation? And where do you see the greatest obstacles in coordination between Brussels and Kyiv?

— The EIB works in close cooperation with the European Commission and the Government of Ukraine.

I would say we have already reached “cruising speed.” Almost every week, a new EIB-supported project is opened or completed in Ukraine — from schools, hospitals, and water supply systems to heating modernisation, shelters, rehabilitation centres, and social housing.

The main task now is to maintain this pace and ensure stable, predictable financing so that reconstruction can move as quickly as Ukraine needs it to.

— In Ukraine, there are frequent calls for faster access to funds. Has the bank managed to adapt its procedures so that recovery funding reaches critically important projects more quickly than before the war?

— Today, speed matters just as much as the financing itself. Since the start of Russia’s full-scale invasion, we have adapted our procedures to work considerably faster, while maintaining the same standards of due diligence and accountability.

One example of such emergency action was our support for Ukraine in the first days after the start of the full-scale invasion. At that point, we swiftly directed €700 million in emergency financing to help ensure the continuous delivery of basic services to the population. At that moment, this was critically important for keeping the state functioning.

Another example was our support for Ukraine this winter. We provided around €500 million in the form of EIB loans and EU grants to NJSC Naftogaz of Ukraine, which helped ensure a stable gas supply and the uninterrupted operation of the residential sector, hospitals, and critical services.

However, agreeing on financing is only part of the process. Equally important is the rapid preparation and implementation of projects. This is why we cooperate with the European Commission and the Government of Ukraine not only in the area of financing, but also in terms of advisory support — helping to prepare projects, build a quality investment portfolio, and strengthen implementation capacity.

During URC-2026, together with the Government of Ukraine, the European Commission, and partner international financial institutions, including the Council of Europe Development Bank (CEB), the EBRD, and the World Bank, we presented the GROUND initiative — Governance Reform for the Operationalisation of Ukraine’s Reconstruction and Development.

Its first phase helped identify how to strengthen Ukraine’s capacity to implement reconstruction projects more effectively — in particular, through improved coordination at government level, project implementation mechanisms, delivery models, and human capital development.

— Ukraine’s private defence industry is currently developing rapidly — this includes manufacturers of drones, electronic warfare systems, and ammunition. Do you have options for direct financing for such companies?

— Over recent years, the EIB’s role in the area of security and defence has grown significantly.

Today we finance companies that develop technologies for both civilian and dual-use purposes, including drones, satellite technologies, and cybersecurity solutions.

A good example is our support for Quantum Systems — a leading European drone manufacturer whose technologies are already being used in Ukraine.

We can also support joint projects between Ukrainian and European companies registered in the EU. This helps, on the one hand, to strengthen the European defence industry, and on the other, to reinforce Ukraine’s long-term resilience.

In parallel, in Ukraine we continue to finance passive protection measures that safeguard people and critical civilian infrastructure. These include anti-drone protection systems for electricity substations, as well as shelters in schools and kindergartens.

— The EIB long avoided involvement in military projects, but in 2025 the bank’s policy changed significantly. Today we can see that you are already financing drone production and military infrastructure.

But regarding the next step — does your updated policy allow for the financing of lethal weapons (artillery shells, missiles)? Or does this question remain a “red line,” given the bank’s ethical standards?

— The EIB has significantly expanded its support for Europe’s security and defence priorities. We focus on areas where we can bring the greatest added value, and act in accordance with the recommendations of EU member states.

Our focus is on dual-use technologies, critical infrastructure, resilience enhancement, and projects that strengthen Europe’s security, in line with the mandate agreed by our shareholders — the EU member states.

— Energy remains the most vulnerable sector for Ukraine. We have already discussed the €600 million package for critical infrastructure restoration. But can we speak in specifics: what portion of these funds will go towards distributed generation (small gas turbines, solar panels for communities)?

— In addition to our support for Naftogaz, we are implementing a €200 million district heating system modernisation programme, delivered through Ukreximbank, Oschadbank, and Ukrgasbank.

Through these partner banks, municipalities can access financing to modernise district heating systems, invest in decentralised heat generation systems, and improve the energy efficiency of public buildings.

We are also supporting the development of renewable energy under the Renewable Energy Solutions Programme. It provides grants for municipalities that are already implementing EIB-financed projects, and allows for the installation of solar panels, battery storage systems, and heat pumps on public buildings, strengthening their energy resilience.

At the same time, we are helping to shape the long-term recovery of Ukraine’s energy sector.

During URC-2026, together with the EBRD and the Energy Community Secretariat, which facilitates the integration of neighbouring countries into the EU energy market, we presented a joint analytical paper outlining priorities for strengthening the resilience, recovery, and long-term transformation of Ukraine’s energy sector.

It highlights the need for coordinated investments alongside reforms to strengthen energy security, modernise infrastructure, attract private investment, and accelerate Ukraine’s integration into the EU energy market.

— Does the bank plan to go beyond supporting state giants such as Naftogaz and more actively finance private energy projects that provide regional autonomy?

— This is already happening in practice. For example, during URC-2026 we signed a €100 million loan agreement with Ukreximbank — this is already the second such operation with this bank — to expand financing for Ukrainian SMEs and mid-sized companies investing in renewable energy, energy efficiency, and other green projects.

We are also implementing a similar €70 million programme through Ukrgasbank.

In addition, we have committed to directing €80 million together with the European Commission and several EU member states to the European Flagship Fund for Ukraine’s Reconstruction.

This is a new EU-backed investment fund that will invest directly in Ukrainian companies and strategic sectors — including renewable energy, transport, digital infrastructure, and manufacturing. It is expected to mobilise more than €1 billion in public and private investment for Ukraine’s recovery.

— Businesses often say that the main obstacle to investment is the absence of war risk insurance. Your colleagues at the EBRD are already taking steps in this direction. Does the EIB plan to act as an insurer or reinsurer for Ukrainian and European companies operating in Ukraine?

— In 2024, together with the European Commission, we launched a €300 million export credit guarantee programme to encourage European companies to work with Ukraine during the war.

This programme reduces risks by protecting businesses from potential losses and giving them greater confidence to export to Ukraine and participate in recovery projects.

The guarantees are provided by the European Investment Fund, which is part of the EIB Group. They are issued through national export credit agencies in a number of EU countries, including Denmark, Finland, Italy, Latvia, Romania, Spain, Slovakia, and Slovenia.

In practical terms, this programme helps ensure the continuous supply to Ukraine of critically important goods — from machinery and construction materials to energy equipment and strategically significant technologies. At the same time, it promotes Ukraine’s deeper integration into the EU single market.

— Regarding the €100 million community recovery programme. In January of this year, the Ukrainian government approved another package of 119 specific regional projects. How many Ukrainian cities and towns have actually received these funds? Who is leading in terms of the number of applications submitted?

— The €100 million programme is part of three EIB municipal recovery programmes totalling €740 million in financing. Under these programmes, we are supporting more than 500 projects across Ukraine.

These include schools, kindergartens, hospitals, rehabilitation centres, water supply facilities, district heating systems, and other critically important services for the population.

This is not a competition between communities in terms of the number of projects submitted. What matters is that 300 communities across Ukraine are already receiving this support, improving basic services and the daily lives of millions of Ukrainians.

— Many communities complain about a shortage of experts to prepare complex applications that meet EU standards. How does your advisory support work?

— Financing is only part of our support. We also provide technical and advisory assistance to help communities prepare and implement projects.

In this area, we work closely with the United Nations Development Programme (UNDP), which provides technical support to Ukrainian communities at all stages of the project cycle. This is particularly important for smaller municipalities that do not always have sufficient technical expertise.

— How does this partnership work in practice: who selects the projects, and who monitors every euro spent?

— The Ministry for Communities and Territories Development of Ukraine, in cooperation with the Ministry of Finance, coordinates and oversees the implementation of the programmes, while local authorities and local self-government bodies are responsible for implementing recovery projects in their communities.

The United Nations Development Programme (UNDP) in Ukraine provides them with technical assistance, supports project implementation, and ensures independent monitoring to guarantee transparency and accountability.

— How do you assess the quality of reforms in Ukraine, and why, in your view, is it so difficult to achieve real change?

— Implementing reform is never an easy process, especially during a full-scale war. The recent decision to open the first negotiating cluster on EU accession is a signal that Ukraine is moving in the right direction.

For its part, the EIB supports reforms both through expert assistance and through financing. Together with the European Commission and the EBRD, we launched the Ukraine FIRST initiative — a project preparation platform that helps the government identify priority investments, prepare projects to a high standard, and strengthen public investment management.

We also cooperate with the Ukrainian authorities on sectoral reforms. For example, our experts contributed to the development of a new housing policy law and continue to support the establishment of a modern social housing system.

Such reforms take time, but they are critically important for Ukraine’s long-term recovery and its path towards the European Union.

— Apart from the war, what is currently the biggest obstacle preventing European private capital from investing in Ukraine?

— Private investors need confidence. This is built through a predictable investment environment, projects that are well prepared for financing, and risk-sharing mechanisms that make investing in Ukraine more attractive.

— What institutional changes (in the courts or the tax system) are investors waiting for before they begin investing their own funds alongside EIB loans?

— Investors expect greater predictability, transparency, and consistency in the legal and regulatory environment. Among the key priorities are strengthening the rule of law, ensuring an independent and effective judicial system, improving tax administration, and reducing corruption risks. Further alignment with EU standards also remains important, particularly in the areas of public procurement, competition policy, and state aid.

As the bank of the European Union, the EIB not only finances projects but also acts as a catalyst for reform. Our investments facilitate the introduction of European governance standards, strengthen institutional capacity, and bring Ukraine closer to EU legislation. Our aim is not simply to support the country’s reconstruction, but to help Ukraine build back better and accelerate its path towards membership of the European Union.

Author: Roman Kot

Source: RBC-Ukraine