Govt greenlights EUR 100 mln French grant to rebuild infrastructure in 2026-2027

The Cabinet of Ministers has agreed to attract a EUR 100 million grant from France for the restoration of critical infrastructure in 2026-2027.

As representative of the Cabinet of Ministers in the Verkhovna Rada, Taras Melnychuk, reported on the Telegram channel, the relevant decision was made at a government meeting on Thursday.

A draft grant agreement (Ukraine Fund II) was approved to promote support for critical infrastructure and priority sectors of the Ukrainian economy. The agreement is between the governments of Ukraine and the French Republic.

The agreement provides for the attraction of EUR 100 million in grant funds from the French government, to be allocated over the 2026 and 2027 fiscal years.

The grant funds will support the reconstruction and restoration of critical infrastructure in sectors such as healthcare, infrastructure, energy, agriculture, water supply, sanitation and irrigation, waste management, mine action, housing construction, and digital technologies.

Additionally, the draft agreement with the French government regarding the implementation of priority projects in strategic sectors to promote Ukraine's stability and recovery was approved.

Specifically, the agreement establishes the legal framework for collaboration in preparing, selecting, financing, and implementing priority projects in strategic sectors of the Ukrainian economy.

The document defines forms of support, such as loans, guarantees, export risk insurance, grants, technical assistance, and expert support; the project initiation and selection mechanism; and the authorized bodies' powers and coordination tools, including joint working/coordination groups and regular information exchange.

Specific projects will be formalized by separate bilateral agreements or contracts that specify the terms of financing, procurement, monitoring, and reporting.