Czechia to Receive €188 Million from EU Budget for Involving Companies in Ukraine’s Reconstruction Efforts

Prague – The Czech Republic is set to receive 188 million euros (roughly 4.7 billion crowns) from the European budget to support the involvement of Czech companies in the reconstruction of Ukraine. This funding will be allocated in the form of guarantees for investment loans and combined guarantees with grants, as announced in a press release from the Ministry of Foreign Affairs. Notably, this marks the first time the Czech Republic has received backing from the European Union’s financial instruments for the international activities of Czech entities.

“Czech companies are engaged in various sectors in Ukraine, playing a vital role in restoring the energy infrastructure. We are supplying water treatment plants to the Dnipro region and providing equipment for surgical facilities in Lviv, Kyiv, and Kharkiv. The success of Czech industry not only benefits our entrepreneurs but also bolsters our national economy,” stated Prime Minister Petr Fiala (ODS).

The first program will see the EU allocate 100 million euros (approximately 2.5 billion crowns) as guarantees for bank loans, primarily aimed at rejuvenating the energy sector in Ukraine. Additionally, the Ministries of Industry and Trade and Foreign Affairs plan to contribute another 850 million crowns for financing loans for Czech companies.

The second program will focus on modernizing six selected Ukrainian hospitals, with the Czech Republic set to receive 88 million euros (2.2 billion crowns) from the European budget. This funding will also be provided in the form of guarantees for bank loans, grants, and technical assistance for the hospitals.

Last year, the EU established the Ukraine Instrument with the goal of bolstering the Ukrainian economy with a total of 50 billion euros (1.25 trillion crowns). The Union anticipates that a significant portion of this funding will return to the European economy. Support for Ukraine has been extended via loans, with a substantial amount earmarked for investment projects by EU-based companies eager to partake in Ukraine’s reconstruction, according to the Ministry of Foreign Affairs. (March 7)