The European Investment Bank (EIB) has confirmed two loans totalling €600 million to support Ukraine’s infrastructure redevelopment and boost its economic recovery.

Its latest initiative is part of a €3 billion support package being delivered until 2016 aimed at rebuilding areas of conflict-damaged eastern areas of the country.

This centres on an instalment of €200 million towards reconstructing roads, hospitals, railways, bridges, damaged public buildings and other social infrastructure.

There is also a finance package of €400 million towards supporting small and medium enterprises within Ukraine, as the country seeks to regain its financial stability.

EIB vice-president László Baranyay said, “The recovery of Ukraine and its economy is vital to improving the living conditions of its citizens and to support the country as it deals with the consequences of the present difficult situation.

“With these loans, EIB lending in 2014 in Ukraine has reached almost €1 billion as part of the €3 billion lending package scheduled for 2014-2016.”

The EIB first agreed financial support to Ukraine in 2007, with a total of €3.1 billion directed towards the country over the past seven years. This has included projects such as an upgrade to the Urengoy-Pomary-Uzhgorod gas pipeline infrastructure and the extension of the Beskyd railway tunnel.

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