During the Ukraine Recovery Conference in Lugano, Switzerland, the European Investment Bank (EIB) has proposed to extend assistance to Ukraine by a new EU-Ukraine Gateway Trust Fund.

EIB Vice-President Teresa Czerwinska said at the conference on Monday it is an additional instrument for the restoration of critical infrastructure.

The mechanism of functioning of this fund has been developed, she said, adding that it would play an important part for attracting investment.

Czerwinska recalled that the EIB investment portfolio in Ukraine was EUR 7 billion, and it has allocated around EUR 700 million since the beginning of the war.

Earlier on Monday, Reuters reported, referring to an EIB document, that the EIB proposed a funding structure previously used during the COVID-19 pandemic to help rebuild Ukraine with up to EUR 100 billion ($104.3 billion) of investment.

The EU-Ukraine Gateway Trust Fund (E-U GTF) would seek to have an initial EUR 20 billion in contributions from EU countries and the EU budget in the form of grants, loans and guarantees, the agency said.

The guarantees in particular would have a multiplier effect, leading to infrastructure projects totaling some EUR 100 billion, the document said, about half of Ukraine's more immediate needs.

The European Commission must first give its assent, with a majority of EU countries then having to approve the plan.