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UGB and AFD discuss financing programme to support community recovery and business development

21/ 10/ 2026
  On 16 October, Volodymyr Ponomarov, Acting Chairperson of the Management Board of UGB (Ukrgasbank), held a working meeting at the headquarters of Agence Française de Développement (AFD) in Paris. Participants included senior representatives of AFD’s geographical department and its Europe, Middle East and Asia division, alongside officials responsible for financial systems and AFD’s Ukraine portfolio. The discussions focused on developing a joint programme to provide affordable financing for municipalities, municipal utilities, and small and medium-sized enterprises (SMEs). The programme’s proposed structure comprises: A €25 million credit line; A €10 million risk-sharing/guarantee facility; Up to €10 million in combined grant support and technical assistance. The parties discussed the programme’s financial and operational terms, with a focus on ensuring accessibility for municipalities and businesses. These terms remain under negotiation. “We are working with AFD on an approach that combines financing, risk sharing and technical assistance. For municipalities, this support matters at every stage, from preparing well-designed projects to implementing them. Our priorities are infrastructure recovery, energy independence and local business development,” said Volodymyr Ponomarov. Participants also discussed the state of Ukraine’s banking sector, UGB’s development strategy and its role as a state-owned bank in financing reconstruction. Particular attention was given to critical and social infrastructure, institutional support for the bank, and strengthening municipalities’ capacity to prepare projects that meet international corporate governance standards, environmental and social requirements, and compliance obligations. The meeting continued the dialogue launched at the Ukraine Recovery Conference (URC), where UGB and AFD signed a Letter of Intent.

On 16 October, Volodymyr Ponomarov, Acting Chairperson of the Management Board of UGB (Ukrgasbank), held a working meeting at the headquarters of Agence Française de Développement (AFD) in Paris. Participants included senior representatives of AFD’s geographical department and its Europe, Middle East and Asia division, alongside officials responsible for financial systems and AFD’s Ukraine portfolio.

The discussions focused on developing a joint programme to provide affordable financing for municipalities, municipal utilities, and small and medium-sized enterprises (SMEs). The programme’s proposed structure comprises:

  • A €25 million credit line;
  • A €10 million risk-sharing/guarantee facility;
  • Up to €10 million in combined grant support and technical assistance.

The parties discussed the programme’s financial and operational terms, with a focus on ensuring accessibility for municipalities and businesses. These terms remain under negotiation.

“We are working with AFD on an approach that combines financing, risk sharing and technical assistance. For municipalities, this support matters at every stage, from preparing well-designed projects to implementing them. Our priorities are infrastructure recovery, energy independence and local business development,” said Volodymyr Ponomarov.

Participants also discussed the state of Ukraine’s banking sector, UGB’s development strategy and its role as a state-owned bank in financing reconstruction. Particular attention was given to critical and social infrastructure, institutional support for the bank, and strengthening municipalities’ capacity to prepare projects that meet international corporate governance standards, environmental and social requirements, and compliance obligations.

The meeting continued the dialogue launched at the Ukraine Recovery Conference (URC), where UGB and AFD signed a Letter of Intent.

This material is provided by a member company or partner organization of the European Business Association as part of an informational collaboration. The Association is not responsible for the accuracy, completeness, or reliability of the information presented. The views, opinions, and recommendations expressed in this material are solely those of the authors and do not reflect the official position of the European Business Association.

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