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The EU allocates €33 billion for Ukraine's transport infrastructure

Jun 7, 2023

An agreement on Ukraine's participation in the Connecting Europe Facility program, under which the EU is allocating 33 billion euros to build Ukraine's transport infrastructure, was signed in Lviv Regional State Administration.


The agreement was solemnly signed by Deputy Prime Minister for Recovery and Minister of Community Development, Territories and Infrastructure Oleksandr Kubrakov and EU Commissioner for Transport Adina Veljan, an Ukrinform correspondent reports.

"Ukraine has signed this Agreement today and has become the first non-EU country to receive an aid package under the Connecting Europe Facility program. Thanks to this, Ukraine becomes part of Europe's infrastructure, and the budget we have agreed on is quite large - it is 33 billion euros," Velian said.

Project financing stipulates that half of the cost is covered by the applicant country from its own sources or international financial organizations, and 50% of the funding is provided by the program.

According to Kubrakov, the signed Agreement opens up the possibility of attracting EU funding to support the development of high-performance, sustainable, and effectively interconnected trans-European networks in the fields of transport, energy, and digital services.

"This Agreement, which we signed today, already allows us to develop our border infrastructure, checkpoints, and transport network together with the European Union. First of all, we are focusing on the development of export logistics on our western borders. We are already discussing with European partners the implementation of the first six project proposals. We have submitted applications and expect the results of the selection process in June. This is an important step on Ukraine's path to European integration," added the Deputy Prime Minister for Recovery.

During the meeting with the EU representatives, Kubrakov also told the European partners about Russia's terrorist attack on the Kakhovka hydroelectric dam. Immediately after the signing, the deputy prime minister left for the Kherson region.

In turn, the European Commission said that the signing of the documents would open up new opportunities for the restoration of Ukraine and its destroyed critical infrastructure. Association with the EU's infrastructure fund will help Ukraine integrate into the EU's Single Market, promote economic growth, create new jobs, and increase competitiveness.

In particular, in the field of transport, Ukrainian government agencies and companies can apply for projects during the 2021-2027 project period. The next call for proposals will be announced in September 2023 and will cover, in particular, projects within the framework of the development of the Trans-European Transport Corridor (TEN-T), which will facilitate the development of communication between EU countries and partner countries.

Similar projects will be considered in the energy sector, within the framework of the Trans-European Energy Network (TEN-E). In November, the European Commission will publish a list of so-called projects of common interest, which Ukraine will be able to join. Another area of funding will cover cross-border green energy projects.

In the digital area, projects will be considered to strengthen digital connectivity within the EU and with third countries, which involves the development of secure, resilient, and highly efficient digital infrastructure, including fifth-generation (5G) telecommunications and mobile networks.

The Connecting Europe Facility program for 2021-2027 provides funding and grants for projects in the field of transport worth €25.8 billion, in the field of energy - €5.8 billion, and in the field of digital development - €2 billion.

Author - Serhii Kolomiets, 07/06/2023

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