04-12-2023

Lithuania signed an agreement with the CEB to allocate EUR 1 million to the reconstruction works of Ukraine

Today, at the meeting of Minister of Finance Gintarė Skaistė and Governor of the Council of Europe Development Bank (CEB) Carlo Monticelli, an agreement by which Lithuania allocates EUR 1 million contribution to the CEB’s Ukraine Solidarity Fund for reconstruction works in Ukraine, including the reconstruction of damaged residential houses, was signed.

"Lithuania strongly supports Ukraine. Ukraine's strength is its people and their determination to fight against the aggressor, so it is important not only to provide military and budgetary support to Ukraine, but also to reduce the negative social consequences of the war. That is why we decided to contribute to the Council of Europe Development Bank's Ukraine Solidarity Fund, which collects funds for the repair of war-damaged apartment buildings and the adaptation of municipal buildings for living," said Minister of Finance of Lithuania Gintarė Skaistė.

The purpose of the CEB’s Ukraine Solidarity Fund is to support internally displaced persons and contribute to the reconstruction of Ukraine. The funds of this Fund will meet various social needs arising due to the war, such as ensuring the well-being and integration of internally displaced persons, rebuilding the social infrastructure of the most important areas of the country, capital repairs of damaged multi-apartment buildings, ensuring more sustainable housing solutions, as well as strengthening the capacities of the Ministry of Reconstruction of Ukraine.

"We look forward to expanding our cooperation with the Ukrainian authorities to meet the country's immediate social and reconstruction needs. This generous contribution from Lithuania will allow the CEB to do much more for the benefit of Ukraine," added CEB Governor Carlo Monticelli.

Lithuania is the fourth donor country to contribute to this Fund, earlier the funds were contributed by Ireland, which initiated its establishment, the Czech Republic, and Germany. It is expected that Lithuania will transfer the funds to the Fund by the end of 2023.

Since 2015 Lithuania has been contributing to the financing of CEB social investments in order to improve social cohesion throughout Europe. Lithuania also contributes to various international initiatives that support Ukraine through the instruments of the European Union and international financial institutions, and is among the leading countries in allocating support to Ukraine. So far, the humanitarian, financial and military aid allocated by Lithuania amounts to 1.9 % of GDP.

On 15 June this year, Ukraine successfully completed the accession process to the CEB and officially became the 43rd member of the CEB. The membership will allow the country to benefit directly from the bank’s support, and the CEB to contribute to Ukraine’s recovery and reconstruction.

Drawing on its long-standing experience as the oldest multilateral development bank in Europe, the CEB will pay particular attention in Ukraine to the areas of social and health infrastructure and affordable housing. This is particularly important due to the launched russian attacks on critical infrastructure and the large internal migration of the population from the war-affected regions of the country. The bank’s Strategic Plan for 2023-2027 foresees that the scope of activities in Ukraine will reach about EUR 200 million this year, and gradually increase to approximately EUR 400 million per year by 2027.