Finland to provide up to EUR 50 mln in 2025 for lending to projects in Ukraine

The governments of Ukraine and Finland have signed a Framework Agreement, according to which Finland will mobilize up to EUR 50 million next year for projects financed under the Finnish-Ukrainian Investment Fund (FUIF) program, the press release of the Ministry of Finance reports.

"As part of the agreement for 2025, it is planned to provide loans in the amount of up to EUR 50 million. Further implementation of the Program will provide for the conclusion of relevant loan agreements to determine the volume, terms and conditions for providing funds," the release specifies.

The agreement was signed on behalf of Ukraine by Finance Minister Serhiy Marchenko, while on behalf of Finland the signatory was Minister for Foreign Trade and Development Ville Tavio.

It is specified that the grant component of the project will be at least 35% of the total cost, which will ensure preferential financing terms.

In addition, the ministers discussed current programs for the development and support of Ukraine's recovery with the assistance of Finland. Marchenko noted the importance of cooperation within the Ukraine Donor Platform, whose steering committee Finland joined in April 2024 as an observer.

In turn, Tavio emphasized that the most promising sectors for investment and recovery for the Finnish side are: energy, education, infrastructure, as well as digital technologies and agriculture.

The Ministry of Finance recalled that direct budget support from Finland since February 2022 amounts to more than $36 million in grant funding.