Exclusive interview with Nadia Calviño, President of the European Investment Bank Group

Text: Oksana Gryshyna

 

Six months ago, you took over as President of the European Investment Bank Group – the financial arm of the European Union. And you recently presented your priorities for the EIB Group. Where does Ukraine feature here?

Our priorities when investing beyond the European Union focus on creating a significant positive impact, starting with Ukraine. The EIB Group is the main investment partner for the country and, since the war began, we have provided over €2 billion there for emergency needs – rebuilding national infrastructure, roads, railways and energy facilities. This will help Ukraine restore and maintain essential municipal services like schools, hospitals, kindergartens and local transport. We’re also facilitating investment to support Ukraine’s businesses, especially SMEs, to keep the economy running. Our Ukrainian partners tell us these efforts have been key to maintaining the resistance, and resilience in the face of Russian aggression.

 As the financial arm of the European Union, we remain steadfast in our support. We are committed to helping preserve Ukraine’s stability, security and resilience now, and – soon, I hope – the country’s reconstruction after the war and its path to EU accession.

 Our support has mainly been channelled through the EU for Ukraine Initiative, based on the contributions of 11 Member States. In the future, we will be implementing the EU’s €50 billion Ukraine Facility.

How are you showing this commitment at the Ukraine Recovery Conference taking place today in Berlin?

The Ukraine Recovery Conference in Berlin is an excellent platform for coordination between donors and Ukraine’s supporters. There is a clear need for stronger collective efforts to drive resilience and reconstruction. Ukraine will be one of the largest reconstruction projects in Europe for years to come.

Our focus now is on accelerating the deployment of projects on the ground. In April we signed a memorandum of understanding with Prime Minister Shmyhal in Washington DC to identify priorities in four key areas: rebuilding critical national infrastructure, such as energy grids and transport networks; repairing social infrastructure in Ukrainian cities like hospitals, schools, kindergartens and houses; supporting private businesses, crucial for enabling and maintaining a functioning economy; and providing much-needed advisory support for the preparation and implementation of recovery projects, and for building strong public capabilities and good governance.

In Berlin, we have announced or signed several new projects and investments in these areas that are also backed by our partners at the European Commission. Projects for local infrastructure, support for Ukraine’s national gas company Naftogaz to decarbonise and diversify energy sources, extending the flagship EU programme for advisory services to Ukraine, and providing new guarantees to mobilise more than €1 billion in loans for Ukrainian SMEs.

This substantial new support for businesses is, as you say, expected to mobilise more than €1 billion – how will that work? Who will be the primary focus?

 We know that Ukraine has a very dynamic and motivated workforce, and is a very entrepreneurial nation, even in the face of the current huge challenges. As in the rest of the world, small businesses are the backbone of the economy. But access to finance is a major challenge for SMEs and microenterprises, especially young and innovative ones, due to the heightened credit risk perceived by banks and microfinance institutions.

Providing EU-backed support to financial institutions to unlock lending to these businesses is crucial for their survival, and of course to mitigating the war’s impact on the private sector and the economy as a whole.

The EIB Group, working with the European Commission and other EU financing institutions, is making a coordinated response. With today’s agreements the European Commission and the EIB Group will unlock over €1 billion in lending to local businesses in Ukraine, helping them access credit on favourable terms and increasing their resilience. In particular, it will target the businesses hit hardest by the war: startups, and those led by women, youth, or those owned by or employing internally displaced people and veterans. We provide partial portfolio guarantees to local banks and other financial intermediaries to improve lending terms and conditions, thus providing broader access to finance for these and other SMEs.

What about the funding announced today for Ukrainian cities? How will it support them in their recovery and resilience? What are the requirements for communities and projects?

Today the EIB and Ukraine signed a further €100 million loan for the reconstruction of Ukrainian cities and communities affected by the war. To repair and build schools, kindergartens, hospitals and local transport, and to ensure the supply of essential services like clean water.

In the face of so many challenges, many communities are still trying to carry on with their lives. Rebuilding hospitals and schools, starting social services back up and opening businesses will help them do this.

Since 2014, community by community, we have rebuilt more than 100 schools, hospitals and water treatment plants. And there are over 200 other projects at various stages of construction.

This is very much the fruit of our partnership with Ukraine’s Ministry for Restoration and Ministry of Finance, our fellow EU partners, the regional and local authorities, and the United Nations Development Programme, with which we have an effective cooperative relationship. Just two weeks ago a school we helped reconstruct was able to reopen in Pryvovchanske in Dnipropetrovsk Oblast. Next month we expect to celebrate the reopening of a rebuilt water supply facility in Bucha.

Following today’s signing, the Ministry for Restoration will be issuing new calls for proposals for projects. Ukraine’s communities will apply for reconstruction of facilities for healthcare, housing, education, emergency shelter and the water sector. The projects are selected according to transparent criteria, and the aim is to cover areas that are liberated, are close to conflict zones, or have a large number of displaced persons.

Of course, I want to stress that when we build, we build back better – more resilient structures, with energy efficiency measures and more modern infrastructure, for example.

A key part of this is building technical capacity and working with our Ukrainian partners to get these projects off the ground. That’s why the advisory package we also signed today is so important. We have extended JASPERS, the EU’s flagship advisory programme, to Ukraine to ensure that we use resources as effectively and efficiently as possible.

What systemic solutions/programmes at the local and state levels are you prepared to support to address the issue of housing restoration (providing housing)?

Housing programmes in Ukraine are of the utmost importance. That is why the EIB Group is addressing the needs of the Ukrainian people here through two special initiatives. The first was created to repair war-damaged multi-apartment houses with a focus on energy efficiency, with a budget of €230 million.

The second initiative was created to develop and finance affordable housing in Ukraine. This is one area where we are working together with our Ukrainian partners to develop a policy framework, for an affordable housing sector that reflects EU best practices.

It’s a subject that’s very dear to my heart, I must say. This initiative will be financed by a €200 million loan programme and substantial grant resources provided by the European Commission. This is a pilot project that will lead to greater scale-up projects for the public housing sector, where we will look to successful models used in many EU Member States.

What are the priority projects going forward, in addition to this financing for Ukrainian SMEs and cities?

In addition to the projects signed in Berlin, the EIB has also approved two other important projects that I hope will be signed soon: rolling out the 112 European emergency number and call system for Ukraine; and investing in transport to restore damaged railway lines and upgrade railway border crossings with EU Member States, and to modernise the metro system in Kyiv.

The EIB Group is also in the final stages of setting up a €300 million pan-European export credit guarantee facility for small and medium companies in the EU that export goods or services to Ukraine.

The new 112 system will put the police, ambulance, fire brigade and gas emergency services onto a single communication platform. This should dramatically improve the quality of emergency assistance and the safety of Ukrainian citizens. This is the standard in Europe, and it should be implemented in Ukraine.

As far as Ukrainian railways are concerned, our support will buy materials for rebuilding tracks, as well as rolling stock, including cars with EU-standard gauge to bring goods to and from the EU.

We will also help the city of Kyiv buy new metro coaches and modernise its existing fleet. This will reduce the dependence on Russian-manufactured rolling stock, spare parts and maintenance equipment.

You’ve mentioned in the past that the EIB Group is supporting Ukraine’s accession process. How is the EIB Group contributing tangibly to this, and how specifically can this support encourage more private sector involvement?

Let me say to Ukraine: You are already part of the family, and we want to help you succeed. By financing projects in critical infrastructure and support for businesses, we are already laying the groundwork for Ukraine’s EU accession.

The EIB has decades of experience in preparing countries for EU membership and integration into the single market. Now we are committed to doing the same for Ukraine, especially by providing financial and technical expertise. One example of this is how we’re extending our advisory programme JASPERS, as I’ve mentioned, which is a partnership between the EIB and the European Commission. Embedding EU standards into projects and processes – that’s how you facilitate integration. The JASPERS experts and the package that comes with the programme will help build capacity to develop and execute investments based on EU standards and legislation, which in turn will attract more private investment.

I am very pleased to have announced in Berlin that we are finalising a €300 million pan-European export credit guarantee facility for EU SMEs that export goods or services to Ukraine. It should be operational by the end of the year. This an important step in supporting Ukraine’s economy and promoting the country’s successful accession to the EU. And it is also filling a current market gap: insurance cover for investors and exports to Ukraine.

We are de-risking investments and exports now, and we will be by your side when the war is over. At that time, I am confident that we will see massive interest from the private sector to participate in the reconstruction.

How do you view the task of the Multi-agency Donor Coordination Platform for Ukraine, and your role in its work?

The scale of the challenge that Ukraine is facing means there can be no overlap, competition or complacency among the international donors. The Multi-agency Donor Coordination Platform for Ukraine – in which our Vice-President Teresa Czerwińska just participated here in Berlin, on the margins of the Ukraine Recovery Conference, – is a key vehicle to ensure that international donors are well-coordinated, deploying resources in the most strategic and impactful way possible. Crucially, this platform also means Ukraine can convene with its key partners directly to make sure recovery and reconstruction efforts align with Ukraine’s broader strategy in this area, reflecting national priorities.

The EIB is also co-leader of the operational group of international financial institutions. Through that group, we coordinate our activities closely with our colleagues, including from the European Bank for Reconstruction and Development, the World Bank and the European Commission.

What are your recommendations for Ukraine regarding the construction of the internal organisational infrastructure for recovery: creating a special agency (e.g. for state recovery) or a bank (e.g. a National Development Institution), involving local authorities, etc.? Which general approaches would you recommend considering?

Choosing the right organisational infrastructure is ultimately up to Ukraine and its institutions, which are best placed to assess their own specific needs and conditions. Whichever structure is chosen, it should be built on the principles of transparency and strong governance.

We are ready to assist with technical advisory and expertise. We are already working with the Ukrainian government to help reform the public investment system, develop a single project pipeline, and ensure that priority projects become fully bankable for financing by international donors. I personally have been working very closely with Minister Marchenko since 2022, and we have built a close relationship that is, I think, allowing us to cooperate very well now and will in the future, too. This is important, and it also shows in the excellent cooperation between our teams on the ground in Ukraine.

How much funding can Ukraine expect from the EIB this year (compared to 2023), and how likely is it to maintain this level in 2025?

We have announced major new programmes and investments here in Berlin, and we are ready to do more. Our support is unwavering. Let me also emphasise the importance of speed, efficiency and impact. In the early days of the war, it was urgent to help maintain the country’s economic stability. Within the first week, we disbursed €700 million to ensure that the government could continue paying salaries, keep banks operational and maintain municipal services. Alongside the European Commission, we were among the first to provide critical support that helped Ukraine withstand the initial shocks.

Our approach is based on Ukraine’s needs and its capacity to absorb and implement investments. In 2022-2023 we disbursed over €2 billion. During this time, the EU established a more comprehensive programme, the Ukraine Facility, which is providing up to €50 billion in grants and loans for 2024-2027. As one of the main implementers of the facility, the EIB Group will deploy at least €2 billion from it to support critical national infrastructure, social infrastructure in cities, the private sector, and stronger advisory services.

While this facility was being developed, the EIB Group also launched a temporary bridge solution in 2023: the EU for Ukraine Initiative, with over €420 million in contributions from EU Member States. This initiative includes a €100 million advisory package, and is currently financing projects until the larger Ukraine Facility is fully rolled out.

All of this is designed to provide timely, effective support for Ukraine’s recovery and reconstruction needs in 2025 and beyond. We are ready to scale up our efforts as needed, and will remain a major financier of Ukraine’s reconstruction and integration into the EU single market.

You met with representatives of the Ukrainian government in Berlin. What was the tone of your discussions, and how do you see the partnership developing during this critical time for the country?

Overall, we have very good, close relations with the Ukrainian authorities. In Berlin, we held meetings with many government representatives, including Deputy Prime Minister for European and Euro-Atlantic Integration Olha Stefanishyna; Acting Minister for Communities, Territories and Infrastructure Development Vasyl Shkurakov; Minister of Finance Sergii Marchenko; and First Deputy Prime Minister and Economy Minister Yulia Svyrydenko. These meetings in Berlin demonstrated consciousness of the urgency of our work, and the need for coordinated and flexible solutions. We discussed aligning our efforts to meet both Ukraine’s immediate and longer-term needs. We have a clear understanding of the joint actions required to pave the way for Ukraine’s accession to the EU.

Ukraine is our neighbour, and a member of our European family – and family supports each other in times of need. We are committed to supporting Ukraine in building back better, according to the aspirations and values of its citizens. Ukraine, know that we will continue to be by your side, providing the necessary support to help achieve these goals.