Brussels, 16/06/2010 (Agence Europe) - On Tuesday 15 June, a government delegation from Ukraine, led by the Ukrainian prime minister Mykola Azarov and including the economy minister Vasyl Tsushko, met with EIB president Philippe Maystadt and the EIB vice-president Eva Srejber, responsible inter alia for EIB lending operations in the EU's Eastern neighbours, including Ukraine. The parties discussed various aspects of cooperation between the EIB and Ukraine, particularly current and future projects for EIB financing in the country.
During the visit, Tsushko and Srejber signed a “host country agreement” for EIB representation in Ukraine. The agreement validates the EIB's representation and activities in the country. In a press release, the EIB says the agreement “will improve the EIB's response to the financing needs of public and private clients and strengthen cooperation with local institutions and partners in Ukraine.”
The EIB finances projects in Ukraine on the basis of an EU Council and European Parliament mandate for Eastern Partner Countries of €3.7 billion for the period 2007-2013. “There is no ex-ante allocation of the overall amount by country”, explains the bank. The mandate envisages financing projects that are of significant interest both to the EU and to Ukraine in transport, energy, telecommunications and environmental infrastructure, as well as SMEs.
The EIB also has a facility for the Eastern Partners (Ukraine, Moldova, Georgia, Armenia, Azerbaijan and Russia), the Eastern Partners Facility, of an amount of up to €1.5 billion, with an upper limit of €500 million for loans to Russia. This facility enables the EIB to provide loans that sector-wise go beyond the scope of the mandate and to help support EU investment in the region, notably through European corporations.
The EIB has so far provided loans to Ukraine totalling €465.5 million, financing projects for road infrastructure (€200 million), energy (€150 million), upgrading of water infrastructure (€15.5 million) and indirectly through commercial banks, projects of SMEs (€100 million). The pipeline of potential loans at various stages of due diligence or pending negotiation is currently in excess of €1bn. (O.L./transl.fl)