URC 2025–2026: an update on agreements and deals for Ukraine’s recovery

The Ukraine Recovery Conference (URC) has become a foundational milestone in shaping the architecture of long-term financial, infrastructural, and humanitarian support for Ukraine. However, the true value of any international summit lies not in high-sounding declarations, but in the actual implementation of agreements reached — the systematic transformation of signed memorandums into legislation, funding disbursements, constructed infrastructure, and launched reforms. As of mid-2026, monitoring of the commitments made at URC 2025 demonstrates a mixed, yet overall positive, trajectory.

The year’s most significant geopolitical and financial breakthrough was the deployment of the G7 Extraordinary Revenue Acceleration (ERA) Loans for Ukraine mechanism. Of the planned $50 billion — backed by future profits from frozen Russian sovereign assets — Ukraine has already successfully raised $45 billion as of 2026. In particular, in November 2025, the Ministry of Finance of Ukraine secured a final tranche of €4.1 billion from the European Union under the ERA Loans framework, which helped ensure critical liquidity for the state budget.

A crucial step within this mechanism was the signing of an agreement between the Ministry of Finance of Ukraine and the World Bank to provide grant funding totaling $690.8 million. These funds form part of the G7 countries’ ERA instrument and were mobilized under the PEACE in Ukraine project. For Canada, this tranche represented the final disbursement under the tool, whereas for Japan, it was the first. Furthermore, in June 2026, Ukraine received €236 million in credit funds from the International Bank for Reconstruction and Development (IBRD) under the ERA instrument, guaranteed by the Government of Sweden. In total, since the launch of the initiative, this mechanism has mobilized $53.5 billion in budget support.

In parallel, other financial commitments are actively progressing:

• In 2025, Ukraine successfully received €10.6 billion (including €0.6 billion as non-repayable grants) under Pillar I of the EU’s Ukraine Facility program — the Ukraine Plan. In 2026, the state also received a seventh tranche of €2.8 billion. Concurrently, the Government, together with the EU, is updating the indicators of the Ukraine Plan, with the focus set to shift toward executing European integration reforms.

Bilateral strategic agreements:

• As part of a 5 billion Swiss franc assistance package through 2036 aimed at restoring energy, transport, and water supply infrastructure, the Swiss State Secretariat for Economic Affairs (SECO) held its first call for proposals in 2025, allocating 93 million Swiss francs to 12 projects. In the first quarter of 2026, the second call concluded with a total SECO contribution of up to 150 million Swiss francs.
• Finland approved an updated cooperation development program with Ukraine for 2025–2028 with a total budget of at least €320 million, focused on humanitarian demining, education, and reconstruction.
• As part of the Netherlands’ €300 million allocation for reconstruction and economic resilience in 2025–2026, the Dutch government launched the NL-UA Cybersecurity Fund grant program with a budget of €2.5 million for cyber defense and separately allocated €10 million to support Ukraine’s broader digital resilience.

In 2026, the Ukraine Investment Framework (UIF) — the investment arm of the EU’s Ukraine Facility aimed at attracting private and public investment — entered a phase of large-scale operational deployment. In 2025, the mechanism successfully mobilized a significant volume of guarantees and grants totaling approximately €2.2 billion. Specifically, within the Ministry for Communities and Territories Development’s portfolio with the European Investment Bank (EIB), which accounts for 64% of the bank’s total portfolio in Ukraine, guarantees worth €1.3 billion were approved for 15 projects. As of early 2026, over 25 programs valued at more than €3.8 billion are under implementation. According to statistics, 58% of the funds are directed toward public sector projects and 42% toward the private sector. Another major boost came with the European Commission’s approval of a new package of 8 investment programs under the UIF worth €1.5 billion, targeting transport infrastructure, municipal housing, and energy efficiency.

Alongside the UIF, other instruments are also progressing:

• The Flagship Fund for Reconstruction of Ukraine, established by the European Commission with an initial capital of €220 million, is actively moving toward its target of mobilizing €500 million by the end of 2026 to finance energy, infrastructure, industry, and dual-use goods.
• Under the World Bank’s PREPARE Ukraine program, a five-year agreement for $200 million was signed to support the preparation of high-quality municipal reconstruction projects. An initial grant of $44.3 million from the World Bank-led URTF Trust Fund, managed by the PPP Agency and the Ministry of Economy, has already been allocated to develop a public investment portfolio. Within the Ukraine Government PPF initiative, preparation for the first pilot public investment project has commenced, accompanied by early market engagement activities.

The energy sector demonstrated the highest rate of practical implementation regarding the URC 2025 agreements. The memorandum signed at the conference between NPC Ukrenergo and the Energy Community Secretariat transformed into a fundamental reform. In March 2026, Law of Ukraine №4777-IX entered into force, which not only strengthens bankruptcy protections for strategic enterprises, but also fundamentally reforms support mechanisms for green energy by replacing fixed tariffs with market-based auctions.

In parallel, the European Bank for Reconstruction and Development (EBRD) finalized the legal framework and allocation of targeted loans to rebuild energy generation capacity:

• NPC Ukrenergo received a €90 million loan to restore damaged substations;
• PJSC Ukrhydroenergo was granted €75 million for major overhauls of hydroelectric units;
• PJSC Ukrnafta secured €160 million to deploy a network of new medium-capacity gas-piston units.

The Ukraine Energy Support Fund has emerged as a crucial financial mechanism for recovery. Norway, which announced a €42 million contribution on the sidelines of URC 2025 to restore and reinforce the protection of critical infrastructure, subsequently scaled up this assistance in a systematic manner. In particular, in February 2026, the country allocated an additional tranche of €86.4 million.

Building resilience is accompanied by steps toward full technological independence in nuclear power — JSC “NNEGC “Energoatom” launched its own production of nuclear fuel components using Westinghouse technology, which will be utilized at Ukrainian nuclear power plants.

In the oil and gas sector, LLC “Gas TSO of Ukraine” (GTSOU) moved to practical implementation of the memorandum signed in July 2025 with the Italian operator Snam S.p.A. Permanent working groups have been established and are operating on a regular basis across three strategic areas:

• analyzing prospects for LNG and pipeline gas transport between Ukraine and Italy, including integrating the potential of Ukraine’s underground gas storage facilities;
• sharing best organizational and technical practices for maintaining modern gas transmission infrastructure;
• establishing a joint research platform to explore opportunities for transporting renewable gases (specifically hydrogen and biomethane).

Another key infrastructure milestone was marked by grant agreements worth €54 million between Ukrzaliznytsia and the EBRD (supported by the EU), aimed at improving accessibility at railway stations, facilitating veteran reintegration, and establishing autonomous distributed power generation for railway operations.

In parallel, recovery and modernization processes extended to the telecommunications sector and municipal infrastructure:

• Under the Memorandum on Telecom Network Modernization, the Finnish Export Credit Agency Finnvera — together with other Export Credit Agencies (ECAs) from the Nordic and Baltic states — signed a Joint Statement of Intent, significantly expanding financial limits and guarantees for supplying high-tech telecommunications equipment to Ukraine. This enabled greater integration of Finnish technology (specifically solutions from Nokia) to restore and safeguard critical digital infrastructure while deploying next-generation networks.
• At the local government level, a landmark case was the launch of the second stage of a large-scale wastewater treatment plant reconstruction in Lviv. The Lviv City Council officially approved grant agreements for a total project value of €29 million, with €22.2 million provided as non-repayable financial assistance from international partners. The municipal enterprise “Lvivvodokanal” conducted an international tender for design and construction (with bid submissions open from January 21 to May 4, 2026), paving the way for construction work to begin in May 2026, with full completion targeted for May 2028.

Private sector development and support for small and medium-sized enterprises (SMEs) received substantial grant and investment backing. Notably, under the German SME Resilience Facility initiative in November 2025, a €40.5 million grant agreement was signed with the German development bank KfW. Implementation of this project is managed by the National Development Institution (NDI), which officially launched operations on January 1, 2026, on the foundation of the Business Development Fund, with the first tranche of €20 million currently expected to arrive.

A major step in systemic SME financing was expanding opportunities for women entrepreneurs. Ukraine officially joined the global WE Finance Code initiative, aimed at broadening access to capital for women-led businesses. As of May 2026, leading domestic financial institutions have joined this international initiative, including JSC CB “PrivatBank”, JSB “UKRGASBANK”, JSC “ProCredit Bank”, and JSC “UNEX BANK”.

Bilateral business initiatives:

• Under cooperation with the Netherlands, the third call for applications under the Ukraine Partnership Facility (UPF) was conducted with a budget of €26.5 million to support joint recovery projects between Dutch and Ukrainian companies.
• Within the framework of partnership with Belgium, a Letter of Intent was signed between BIO Invest and Bank Lviv to allocate €5 million for lending to small and medium-sized businesses in Ukraine’s western regions. Additionally, in early 2026, the Belgian institution finalized a $6 million deal, joining the Rebuild Ukraine Fund (REBUF) alongside the IFC, EBRD, and Dragon Capital to support the private sector. In total, as of 2026, Belgium has evaluated over 26 Ukrainian projects, focusing on further investments in renewable energy.
• Ukraine and Italy signed a Memorandum on access to Italian financial mechanisms featuring insurance coverage of up to 100% from SACE for export credits worth up to €1.5 billion. This also unlocks blended finance options for local communities and procurement of Italian goods for reconstruction. To boost B2B collaboration, the Ministry of Economy — together with CDP, SACE, and SIMEST — hosted two “Italy meets Ukraine” online seminars. Furthermore, during a meeting at the Italian Embassy, the parties discussed mitigating risks for Italian companies, emphasizing the priority of developing financial guarantees and strengthening institutional presence on the ground.

The resilience of the agro-industrial complex amid wartime challenges is maintained by securing major international grants and systemic modernization programs:

• A strategic vector of support for farmers became the World Bank’s “Agriculture Recovery Inclusive Support Emergency” (ARISE) project. Agreements reached at URC 2025 allowed mobilizing an additional $50 million grant from the International Bank for Reconstruction and Development (IBRD) through the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF). By decision of the relevant Verkhovna Rada Committee, these funds were allocated for direct support to small and medium farmers: funding per-hectare subsidies for farms (up to 120 ha) and special grants for raising cattle, goats, and sheep.
• Agricultural sector development in the Odesa region was marked by the signing of two key agreements with Italy. The first agreement involves the Pro.UKR project for cooperative development and technical modernization of farms, with application intake for farmers open since February 2, 2026. The second agreement provides a €6 million grant for large-scale reconstruction of irrigation systems in Tatarbunary and Kiliya to enhance climate resilience. The law ratifying this grant agreement was signed by the President of Ukraine and entered into force on March 5, 2026.
• The Bucha Industrial and Logistics Hub is a major €200 million project by the American firm White Star Real Estate within Bucha Techno Garden, which currently lacks new public investment updates regarding physical construction. However, the company demonstrated solidarity with the community by donating uninterruptible power supplies worth UAH 1 million to the “Buchaservis” public utility to ensure stable and continuous water supply.

URC 2025 social and humanitarian projects demonstrate high practical engagement and tangible first results directly within local communities.

Under the memorandum signed with the Belgian development agency Enabel, long-term projects are being implemented in Ukraine covering medical rehabilitation, hospital modernization, 3D prosthetics, telemedicine, and professional training, with a total funding volume of €31 million. Specifically, with the support of the Belgian government, the “Barrier-Free Movement” project is underway, along with the renovation of the Pryluky Central District Hospital in the Chernihiv region, the Chernihiv Regional Blood Center, and the restoration of an outpatient clinic in Bohdanivka, Kyiv region. Furthermore, in February 2026, the Ministry of Health of Ukraine, Enabel, and the Superhumans Center signed a joint memorandum to establish a system in Ukraine for treating complex maxillofacial surgery cases, while the Youth Council under the Ministry of Health, supported by the Belgian side, created an educational 10-episode podcast series featuring specialized experts for young people.

French company Ellipse Projects SAS signed a final contract worth €35 million and is commencing preparatory work for the construction of a new, modern surgical building in Nizhyn. Additionally, an agreement with Italy was ratified to provide a soft loan of €30 million for the restoration of a children’s hospital in Odesa (the project is in the preparation phase, with tender announcements expected).

A major step in the systemic transformation of the sector was the deployment of the “Healthier Ukraine” initiative, verbally announced at URC 2025. The project aims to build a sustainable healthcare system and focuses on two priorities: improving governance through inclusive policy dialogue aligned with EU and WHO standards, and strengthening national workforce and legislative capacity to address key public health challenges.

In the healthcare and civil protection sectors, agreements have been established and documents signed totaling over €75 million. Supported by France, a state-of-the-art prosthetics center worth €2.47 million equipped with 20 3D printers was launched in Lviv, micro-clinics were opened in Kyiv and Poltava, and construction of a Superhumans center in Odesa is being prepared to offer a full range of services from prosthetics to psychological support. Meanwhile, construction of the UNBROKEN rehabilitation center in Bryukhovychi continues, backed by €620 thousand allocated by Lithuania. Medical institutions in Kyiv also received mobile boiler units for backup heating supply, and a renovated outpatient clinic destroyed during the occupation was opened in the Kyiv region.

Strengthening medical infrastructure with the support of international financial institutions became a landmark trajectory. Specifically, under the Joint Statement between the Ministry of Health of Ukraine and the Council of Europe Development Bank (CEB), a large-scale hospital modernization project is underway. Following the first phase of urgent repairs (roof replacements, electrical panel upgrades, and accessibility enhancements), the parties agreed on an additional €2 million in November 2025. These funds are directed toward upgrading elevator systems, sanitation facilities, reconstructing a maternity ward, and procuring modern equipment and furniture.

At the strategic level, the practical phase of localizing the production of innovative medicines and biotechnologies in Ukraine — an initiative launched by SE “Medical Procurement of Ukraine” and FHLR (Roche) — has begun. Having established the groundwork for their partnership in Rome, the parties are currently carrying out planned legal and regulatory procedures for the preparatory stage. A key step for transparency was the successful compliance review in May of this year by the Antimonopoly Committee of Ukraine regarding economic competition protection requirements. Internal alignment of ongoing processes is currently underway to ensure further effective project implementation in the best interest of Ukrainian patients.

In parallel, construction began on the new €35 million surgical building in Nizhyn, designed for 100 beds and equipped with modern operating rooms and an underground radiation shelter, with completion targeted within 36 months. Additionally, €4 million from the Netherlands was allocated for a new wing at the Children’s Hospital in Lviv in collaboration with the Princess Máxima Center for Pediatric Oncology. On population safety, Finland will assist in building 10,000 shelters and, together with Ukraine, co-chairs the Civil Protection Development Coalition, which has already approved its first 7 shelter construction and reconstruction projects in schools and hospitals across six Ukrainian regions via the Ukraine Facility program.

International support for the education sector focuses on infrastructure restoration, system reform, and attracting young professionals. Lithuania allocated €21 million for modernizing educational services, under which a technical design for a hub school in Zhytomyr has already been developed, and site preparation for construction on the location of a demolished old lyceum has begun. Also under the “Improving Student Learning in Ukraine” project, jointly organized with savED and CPVA, a STEM & ART festival was held for over 300 children, and solar power plants were installed at Malyn Lyceum №4. Ukraine and Switzerland signed a Memorandum launching Phase II of the DECIDE project with funding of 33.6 million Swiss francs, joined by four new regions to implement career guidance systems and upper secondary education reform.

To encourage talented youth to return from abroad, the “Create Ukraine” program was expanded with financial support from Lithuania worth €1 million, enabling the first 25 young professionals to begin working in Ukrainian ministries and the Office of the President. For the youngest citizens, under the First Steps Forward initiative, a Global Alliance for Early Childhood Education was established with an initial World Bank contribution of $30 million, while the European Commission allocated an additional €25 million to create safe and modern spaces in kindergartens. Furthermore, the launch of the International Coalition to Support Science, Research, and Innovation in Ukraine was announced, accompanied by the signing of the Rome Declaration to coordinate financial aid for researchers and prevent brain drain. As of May 2026, the Coalition includes 43 foreign and international organizations. Its first technical-level meeting was held online on December 9, 2025, focusing on “Supporting Ukrainian scientists working in Ukraine to prevent brain drain and promote scientific brain circulation.”

In the sociocultural sphere, the European Union allocated an additional €2 million under the Creative Europe program to support Ukrainian artists and cultural institutions, where a key outcome was the provision of direct mental health grants for creative workers within the Culture Helps Solidarity project. In the labor market, Ukraine and Belgium concluded a Memorandum regarding the BE-Relieve Ukraine program through the Enabel agency to support youth employment and implement European practices; under this initiative, the Belgian side is already transferring 212 generators for schools and communities, as well as 54 mobile and modular boiler houses to Ukraine. Enabel has also launched grant calls for professional development and career support programs for workers.

To engage civil society in European integration processes, Ukraine and the EU announced the “Ukraine2EU” grant call, whose total budget grew to €3.5 million thanks to an additional contribution from Poland, with the first 20 selected projects already under implementation. A major institutional step toward shaping new HR standards and supporting veterans and internally displaced persons (IDPs) was the adoption of the Human Capital Resilience Charter — an initiative by the Ministry of Economy, the Ministry of Veterans Affairs, the National Bank of Ukraine, and the EBRD — which the Lviv City Council became the first municipality to join.

In the defense sector, the key financial breakthrough was the signing of a credit agreement with the United Kingdom worth nearly £1.7 billion, backed by UKEF guarantees for a term of 19 years, to finance a air defense development project. Under this partnership, the UK has already allocated a £100 million air defense assistance package to safeguard cities and critical infrastructure. Additionally, Germany delivered supplementary Patriot and IRIS-T air defense systems to Ukraine.

To enhance technological capabilities, Ukraine and the EU launched the BraveTech EU initiative with a budget of €100 million to support defense startups, host hackathons, and foster technological game-changers. The European Commission and the European Defence Agency have already signed a contribution agreement worth €35 million for the first phase. Furthermore, under the EU4UA Defence Tech initiative, the €3.3 million BRAVE1 grant program is operational, with the first 12 winning Ukrainian companies securing funding for airspace protection technologies. In addition, Norway directed over UAH 100 million through the Norad Agency toward a project to enhance the cyber resilience of the State Migration Service of Ukraine, implemented by the Estonian Centre for International Development.

URC has established itself as an annual platform for aligning policies, funding approaches, and technical assistance for Ukraine’s recovery, at both the national and local levels. From the principles established in Lugano in 2022, their practical application is continuously realized through the agreements forged during these conferences.

For Ukraine, these gatherings offer an opportunity to present its own experience of resilience in wartime and showcase best recovery practices. Concurrently, the international community is able to coordinate its support while addressing immediate priorities.

The accumulated commitments are forming the foundation for institutionalizing reconstruction — establishing more resilient, transparent, and predictable rules of engagement between Ukraine and its international partners. Evidence of this includes the operational launch of the G7 ERA mechanism, grounded in holding Russia accountable for destruction and damages incurred, as well as the macro-financial economic support announced by various nations through existing instruments.

Business interests remain focused on both attracting investment and expanding into new markets related to construction, defense equipment, military technology, medical devices, and demining.

Ukrainian municipalities have gained opportunities to establish new inter-municipal partnerships and secure additional funding for local initiatives, while civil society continues to advocate for socially vital changes regarding recovery.

The agreements endorsed at URC 2025 carry long-term value for Ukraine’s resilience during the war, making such annual events strategically and practically indispensable. The next conference, to be held in Gdańsk (Poland) on June 25–26, 2026, will serve as a crucial stage to collectively review progress and address the ongoing challenges Ukraine faces as a result of the war.