British International Investment (BII), the UK’s development finance institution and impact investor, is strengthening its support for Ukraine’s economic resilience and recovery through a series of new investments in partnership with other leading international institutions, including the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC).
Announced at this year’s Ukraine Recovery Conference in Poland, the investments under BII’s Ukraine Investment Programme will deliver critical financing to small businesses, expand renewable energy capacity and mobilise private capital, as Ukraine continues to face severe disruption from the ongoing war.
Supporting small businesses and food security
BII is supporting the EBRD’s local currency lending facility to Bank Lviv, a Ukrainian bank focused on financing small and medium-sized enterprises (SMEs) in western Ukraine.
The transaction is structured as an unfunded risk participation, with BII guaranteeing 50 per cent of a €40 million senior loan from EBRD to Bank Lviv. Through this facility, the Bank will extend financing to Ukrainian SMEs that require urgent support due to the war, including businesses operating in agriculture and food production, as well as companies that have relocated to western Ukraine.
By sustaining agricultural value chains and improving access to finance, the investment will help protect food security, support jobs and strengthen the resilience of Ukraine’s SME sector during a critical period.
Scaling renewable energy and strengthening energy security
BII is also co-financing the Galnaftogaz Wind II project alongside the EBRD, IFC and other development finance institutions, providing a €48.5 million long-term senior loan as part of a broader financing package of approximately €262.5 million.
The project will support the development, construction and operation of two onshore wind farms with a combined capacity of 189 MW in western Ukraine. Once operational, the wind farms are expected to generate around 467 GWh of renewable electricity annually, helping to address power shortages caused by damage to infrastructure and avoiding approximately 300,000 tonnes of CO₂ emissions each year.
The project will bolster Ukraine’s energy resilience, reduce reliance on disrupted supply, and support the private sector’s role in rebuilding the country’s power system.
Mobilising capital for Ukraine’s long-term recovery
BII also announced its intention to commit €15 million to the European Flagship Fund for the Reconstruction of Ukraine, a platform designed to mobilise capital at scale for the country’s recovery.
The Fund will invest in key sectors such as energy, infrastructure and SMEs, using a blended finance model to attract private capital by reducing risk for commercial investors.
Minister for Europe, Stephen Doughty said: “I welcome BII’s investment into Ukraine’s renewable energy and banking sectors along with BII’s intention to support the EU Flagship Fund to help drive Ukraine’s recovery through the war effort and beyond. “These investments will be vital in strengthening Ukraine’s economy and boosting energy security to protect communities and keep the lights on. The UK stands shoulder to shoulder with Ukraine and will continue to work closely with BII to help them rebuild for the future.”
Colin Buckley, Managing Director and General Counsel at BII, said: “Ukraine’s private sector continues to demonstrate remarkable resilience in the face of ongoing disruption. Through these investments, BII is supporting businesses that are critical to the country’s economy – from SMEs underpinning food security and jobs, to renewable energy projects that strengthen energy independence.”
