Czech companies at start of Ukraine's recovery
The EU Ukraine Facility, implemented in cooperation with the National Development Bank (NDB), provides Czech companies with the opportunity to participate in the reconstruction and recovery of post-war Ukraine and offers loan guarantees and advantageous financing conditions.
The European Union is responding to the difficulties of commercial entities in raising finance for investment in Ukraine. Through the Ukraine Facility, it has made funds available from the EU budget for loan guarantees, reducing the risk associated with these investments and facilitating the financing of the recovery and reconstruction of the war-damaged country.
In the Czech Republic, NDB is a key partner in the programme and has already applied for support in the upcoming guarantee programme. Once approved, NDB will be able to offer entrepreneurs the opportunity to apply to Czech and Ukrainian banks for loans with longer maturities and guarantees backed by NDB and the European Commission's counter-guarantee. However, the programme will not provide any grants or subsidies.
The programme opens the door for Czech companies that want to expand into the Ukrainian market or participate in the reconstruction of the country. Since the beneficiary of the guaranteed loan must be a Ukrainian entity, the Czech company will indicate in its application the Ukrainian beneficiary that will implement the project and apply for the guaranteed loan.
The involvement is possible, e.g., via:
- a subsidiary of a Czech company in Ukraine/a Ukrainian branch a local company (co-)owned by Czech owners,
- a Czech-Ukrainian joint venture,
- a project SPV or a Ukrainian company with a partner Czech company,
- a Czech investor investing in projects in Ukraine,
- a Ukrainian public entity (e.g., city, municipality, state entity).
The programme is expected to formally launch in September or October 2025. Companies already have the opportunity to contact NDB to consult on their proposed project in relation to the terms of the programme. Once the programme is approved, we will report on this.
In cooperation with our colleagues from KPMG Ukraine, we will be happy to help you find a suitable solution for your project from a financial, legal, tax, and risk management perspective.