EU Announces €2.3 Billion Aid for Ukraine’s Reconstruction

Brussels (Brussels Morning Newspaper) – On Thursday, the European Commission revealed a 2.3 billion euro aid package for Ukraine to assist in its reconstruction following the extensive destruction caused by Russia’s full-scale invasion.

Russia’s air strikes have seriously impacted the infrastructure of Ukraine, hitting energy structures, military bases, and civilian buildings. The most recent and largest Russian air attack against Ukraine that took place overnight on July 8 – July 9, 2025, struck 728 drones and 13 missiles. It impacted western Ukraine only, including energy sites and military airfield infrastructure.

What is included in the €2.3 billion package?

EU Commission President Ursula von der Leyen announced at a Rome conference that the funds comprise 1.8 billion euros in loan guarantees and 580 million euros in grants from international and bilateral public financial institutions for Ukraine’s reconstruction.

The €2.3 billion is included in the Ukraine Investment Framework, which Von der Leyen stated could mobilize up to €10 billion in investments in Ukraine. She also announced a new equity fund for Ukraine’s reconstruction, supported by the European Investment Bank, France, Germany, Italy, and Poland.

With an initial capital of 220 million euros, the fund aims to mobilise 500 million euros by 2026, the Commission said.

How much destruction has Russia caused in Ukraine?

According to reports, Russia’s invasion of Ukraine has resulted in tremendous destruction to Ukraine’s infrastructure and civilian property, with total direct damage now estimated at over $175 billion, a total that increased nearly $23 billion from the year before as of late 2024. Destruction continues to occur across multiple critical sectors. 

For example, the electricity transmission system experienced damages that were estimated at approximately $2.2 billion, while the losses associated with losses in distribution networks were an estimated $826 million. Similarly, telecommunications infrastructure was damaged, which has greatly impacted the availability of communications and emergency services, and witnessed nearly 30% more destruction in claims from 2022 to 2023.