The European Union Will Allocate €1.08 Billion to Finance the Reconstruction of Ukrainian Communities

The EU has announced the launch of new support programmes for Ukrainian communities totalling €1.08 billion. The funding will be directed towards municipal projects — modernisation of heating and water supply systems, energy efficiency, waste management, and the construction of social housing.

The funds will be channelled through international financial institutions, including the EIB, the French agency AFD, the Polish BGK, and the Nordic finance corporation NEFCO.

Ukrainian state banks — Oschadbank, Ukreximbank, and Ukrgasbank — will also join in implementing the programmes. The new programmes will operate within the UIF — the EU’s main investment mechanism for Ukraine’s reconstruction.

It is worth noting that the state programme eVidnovlennia, which compensates Ukrainians for housing losses caused by Russian aggression, has assisted 231,681 families over nearly three years of operation. The total amount of compensation paid out has exceeded ₴119 billion. The largest share of funds has been directed towards the purchase of new housing to replace destroyed properties.

Meanwhile, Kyiv has allocated more than ₴2.33 billion from the city budget since the start of Russia’s full-scale invasion to restore residential buildings damaged by Russian attacks. In 2026 alone, the city has set aside more than ₴574 million for the reconstruction of its housing stock.

As of 1 July, restoration works have been completed in 31 apartment buildings in the capital, with dozens more at various stages of reconstruction.

At the same time, in Kyiv Oblast, under the “Reconstruction of Ukraine” initiative, all 18 apartment buildings have been fully restored through joint funding from the state and the UNITED24 fundraising platform. As a result, more than 4,000 people are once again able to live in their own homes.

More than ₴860 million was allocated to the project, of which over ₴735 million came from donors across 110 countries, raised through UNITED24. The remainder was provided by the Fund for the Elimination of the Consequences of Armed Aggression and local budgets. Kyiv Oblast remains one of the key regions for reconstruction. Of more than 30,000 damaged or destroyed properties, around 24,000 have already been restored. Nearly 1,700 of more than 2,100 damaged apartment buildings have also been restored.

Source: Ukrainian Business News