Finland will provide Ukraine with a loan of up to €50 million. What will the funds be used for?

Finance Minister Serhiy Marchenko and Finland's Minister of Foreign Trade and Development Ville Tavio have signed a Framework Agreement concerning projects funded by the Finnish-Ukrainian Investment Fund (FUIF).

This is reported by the press service of the Ministry of Finance.

The Framework Agreement outlines the provision of loans amounting to up to 50 million euros for the year 2025. The further implementation of the Program will involve the conclusion of relevant loan agreements to define the volume, terms, and conditions of the loans provided.

"The grant component of the project will account for no less than 35% of the total cost, which will ensure preferential financing conditions," the ministry stated.

It is noted that direct budget support from Finland since February 2022 has exceeded 36 million USD in grant funding. According to the Kiel Institute for the World Economy, Finland is the fifth largest donor of military, humanitarian, and financial assistance to Ukraine relative to the country's GDP, amounting to approximately 2.5 billion euros or 0.9% of GDP.

In addition, the parties discussed ongoing development programs and support for the reconstruction of Ukraine with the assistance of Finland.

Minister Ville Tavio mentioned that the main sectors for investment and reconstruction that the Finnish side plans to engage in are energy, education, infrastructure, as well as digital technologies and agriculture.

Background. Earlier, Mind reported that the EU has finally approved the allocation of up to 35 billion euros to Ukraine from frozen Russian assets. The decision was voted on by the EU Council through a written procedure.