The European Bank for Reconstruction and Development (EBRD) is significantly increasing its financial backing for Kyiv, Ukraine’s capital, by providing a new €50 million loan. This initiative matches the bank’s previous lending efforts in 2024 and is aimed at ensuring the continuous delivery of essential municipal services amidst the ongoing conflict with Russia.

This financial support is bolstered by a first-loss risk cover guarantee from the European Union (EU) under its Ukraine Investment Framework. The EU’s guarantee covers 25% of the financing, which is crucial for enabling Kyiv and its primary municipal utility to meet urgent liquidity needs while maintaining vital public services.

Kyiv, a major economic hub with a population of around 3 million, has been severely impacted by Russia’s attacks on Ukraine’s energy infrastructure. As of the end of 2025, the city was accommodating approximately 400,000 internally displaced people. The damage to Kyiv’s heating and power systems, particularly in early 2026, disrupted essential services to residential and critical public facilities, including hospitals and schools.

The EBRD loan is designed to assist Kyiv and its municipal utility, Kyivteploenergo (KTE), in addressing liquidity challenges caused by wartime damage and increased service demands. The financing will support the provision of essential heating, electricity, and municipal services, helping KTE maintain operations, retain its workforce, and conduct urgent repairs before the winter season.

Additionally, the loan will aid Kyiv’s efforts to enhance energy resilience by deploying decentralized cogeneration units capable of operating independently during national grid outages. This initiative is vital for safeguarding public health, maintaining educational and healthcare services, supporting economic activities, and ensuring residents can safely remain in their homes during winter.

The EBRD and EU’s support will also enable Kyiv to expand its veterans’ assistance network, improving access to rehabilitation, reintegration, and social support services for veterans and their families. This expansion aims to handle up to 60,000 requests annually.

As Ukraine’s largest institutional investor, the EBRD has significantly increased its support since Russia’s full-scale invasion in 2022. The bank has deployed €10.5 billion to bolster the real economy, focusing on energy security, private-sector resilience, and critical infrastructure.