PrivatBank and the European Investment Bank (EIB) Group signed a €3.4 million grant agreement to support Ukrainian businesses during the war. The signature of the agreement was acknowledged by PrivatBank Management Board Chairman Mikael Björknert and Director General of EIB Global Andrew McDowell during the ReBuild Ukraine 2026 international exhibition-conference in Warsaw.
The financing is provided under the European Union’s EU4Business initiative “Ukraine Facility Partial Portfolio Guarantee” and the Ukraine Facility instrument. The programme is designed to provide additional incentives for the most vulnerable micro, small and medium-sized enterprises (SMEs) amid the full-scale war, as well as businesses affected by the war.
Thanks to the grant, PrivatBank’s business clients will be able to receive non-repayable financial compensation for a portion of their expenses under loan agreements:
- Up to 10% of the financing amount or paid expenses — base grant compensation rate;
- Up to 25% of the financing amount or paid expenses — for enterprises operating or implementing projects in frontline regions;
- Up to €200,000 — maximum grant support amount per business entity.
Grants are provided for the purchase of fixed assets, and for businesses operating in frontline regions, grants can also complement loans for working capital financing.
Special attention within the programme is given to socially important business categories. Grants are available to enterprises meeting the target group criteria, including:
- businesses whose assets have been damaged or destroyed as a result of war actions;
- enterprises located in high war-risk areas;
- businesses owned or run by war veterans or internally displaced people (IDPs), as well as companies where veterans or IDPs constitute a significant share of the workforce (over 20% of employees or over 30% of management positions);
- enterprises owned or led by women or young entrepreneurs under 36 years of age;
- startups and newly established companies registered less than 3 years ago.
“Ukraine’s small and medium-sized businesses are the backbone of its economy and will be essential to the country’s recovery,” said EIB Group Vice-President Karl Nehammer. “By joining forces with Ukrainian banks, we are helping businesses overcome the challenges of war, safeguard jobs and access the financing they need to keep the economy moving.”
“Cooperation with the European Investment Bank and EU support open additional opportunities for Ukrainian entrepreneurs who continue working actively despite the challenges of full-scale war. Combining bank lending with direct European grants reduces the financial burden on businesses, allowing them to save jobs and spur production modernization even in high-risk regions,” emphasized Chairman of the Management Board of PrivatBank Mikael Björknert.
EU Ambassador to Ukraine Katarína Mathernová said: “Supporting Ukrainian businesses is an investment in Ukraine’s economic resilience, recovery and future within the European Union. These new agreements demonstrate how EU-backed financial instruments under the Ukraine Investment Framework can help unlock financing for Ukrainian MSMEs, enabling them to sustain operations, invest in growth and create jobs during extremely difficult environment caused by the Russian war of aggression.”
Background information:
The programme is financed by the European Union and implemented by the European Investment Fund (EIF), part of the EIB Group, under the Ukraine Facility framework. The programme combines portfolio guarantees and investment grants to stimulate investment in the recovery and sustainable development of the Ukrainian economy.
