EU pledges $2.7 billion for Ukrainian reconstruction

On July 10, 2025, the European Commission revealed a substantial financial package aimed at bolstering Ukraine's recovery and reconstruction efforts during the ongoing conflict. This announcement was made during the Ukraine Recovery Conference in Rome by European Commission President Ursula von der Leyen, reinforcing the EU's commitment to Ukraine as its strongest partner and key investor. The financial package includes approximately $2.1 billion in loan guarantees alongside $677 million in grants, positioned to mobilize up to $11.7 billion in investments towards rebuilding infrastructure, healthcare, business revival, and securing energy supplies. Von der Leyen emphasized that the initiative marks the establishment of the largest equity fund globally tailored to support reconstruction efforts. The fund is expected to kickstart investments in crucial sectors such as energy, transport, critical raw materials, and other dual-use industries, ultimately aiming to drive Ukraine's economic recovery. Notably, the initial capital for the fund is set at $257 million, with plans to increase this amount to $584 million by 2026, as the security situation in Ukraine evolves over time. Contributors to the fund include Italy, Germany, France, Poland, and the European Investment Bank, which demonstrates a unified European approach towards supporting Ukraine in its recovery journey. Ukrainian Finance Minister Serhii Marchenko also highlighted the urgent need for external financing, estimating that the nation would require at least $40 billion by 2026, as much of its budget is currently allocated to defense amid the ongoing conflict with Russia. The establishment of this fund marks a significant moment in the EU's strategic alignment with Ukraine, further solidifying economic ties and demonstrating a long-term commitment to Ukraine's path towards EU integration. The initiative not only aims to support immediate recovery needs but also endeavors to lay a robust foundation for future investments, enhancing Ukraine's overall economic resilience.