Supporting Ukraine’s reconstruction

France’s strategy is set out across several time-frames and at different multilateral, European, bilateral and local levels. In addition to providing financial and technical assistance tools, the French Government is working with French companies, local government bodies and civil society to help them contribute to Ukraine’s reconstruction.

In March 2023, the French President appointed a special envoy for aid and reconstruction of Ukraine, Pierre Heilbronn, to define and deploy the French civil support strategy for the country and bring on board French companies. The special envoy also represents France on the Steering Committee of the Ukraine Donor Platform that the G7 set up on 12 December 2022.

Financing for priority sectors

In addition to existing instruments like concessional loans, the Private Sector Study and Aid Fund (FASEP) and export insurance (including war risk insurance, which can cover up to 95% of investments), France is working to support sectors that are essential to Ukrainian resilience in the medium and long terms. Several specific steps have been taken in this regard, including:

• Creation of a civil aid fund of €200 million of grants to finance projects supporting critical infrastructure, including almost €60 million for the energy sector as well as support for the transport, water and health sectors and mine clearance.
• An AFD mandate to operate in Ukraine, as announced during President Zelenskyy’s visit to Paris on 7 June 2024, offering loans and grants to local government bodies for projects fostering the country’s modernization and EU integration. The AFD will provide €400 million in loans and €50 million in grants through to 2027, without impacting Ukraine’s debt.
• A contribution of almost €6 million to the Ukraine Energy Support Fund (UESF) managed by the Energy Community Secretariat, to support the resilience of Ukraine’s energy infrastructure.
• Granting of two concessional loans totalling €46 million to the Ukrainian Ministry of Health to strengthen the health system by building new hospitals and supporting the fight against breast cancer, while further loan projects are being considered.
• Financing by Expertise France (AFD Group) of the new Superhumans Centre in Odesa, to build Ukraine’s capacities for physical and psychological rehabilitation.

Certain developments illustrate the contribution of French companies to growth and the reconstruction of priority sectors:

• NJJ’s investment in the Ukrainian telecommunications sector is the largest foreign investment in the country in a decade.
• The supply by Saarstahl Rail in Hayange (Moselle) of 20,000 tons of rails to the Ukrainian rail company Ukrzaliznytsia, to repair more than 150 km of railway track, enabled by a concessional loan to the Ukrainian Government of €37.6 million.

• A memorandum of understanding between Alstom and Ukrzaliznytsia was signed to supply locomotives suited to Ukrainian needs.
• A memorandum of understanding was signed between EDF and Energoatom and Schneider Electric and DTEK to modernize Ukrainian electricity infrastructure.

Development of technical assistance

With a view to Ukraine’s EU accession, France is working to support its convergence with EU norms and standards, including by:

• Deploying some 20 high-level technical experts to Ukrainian ministries.
• Boosting the staff numbers of Expertise France in Ukraine and setting up programmes, like the mAIDan technical assistance facility (€14.5 million) to leverage French technical cooperation to prepare reconstruction and the EU accession process. Expertise France is active in several sectors in Ukraine, including health, infrastructure rehabilitation, governance and justice.
• Increasing the number of inter-hospital cooperation programmes.

Update: November 2024