The Danish government has allocated an additional €200mn to its export credit agency for use in Ukraine, offering a major boost to Kyiv’s reconstruction plans.
The funding, announced at an inter-government meeting in Copenhagen on August 27, would enable Denmark’s Export and Investment Fund (EIFO) to grow support for Danish firms investing in and exporting to Ukraine.
“Today’s visit to Denmark begins with an important decision – the Danish government is allocating DKK500mn to the Ukraine Fund,” said Ukraine’s prime minister, Yulia Svyrydenko.
“This is guarantee capital that enables EIFO to support investments and export projects worth at least DKK 1.5bn. The mechanism reduces risks for businesses and opens the way for Danish companies to take part in Ukraine’s reconstruction,” Svyrydenko said.
“We highly value Denmark’s consistent support since the very first day of the full-scale war.”
EIFO initially paused coverage for the Ukrainian market when Russia launched its invasion in 2022, but the following year was tasked by the Danish government with administering its Ukraine Fund.
The latest EIFO funding pot will be included the Danish state’s budget proposal for 2026, which is still subject to parliamentary approval.
If approved, it will bring the value of the agency’s Ukraine Fund to €955mn. EIFO, which provides direct financing as well as long-term guarantees, also offers a €130mn guarantee scheme to support investment in Ukraine’s defence sector.
“EIFO has now financed more than 20 projects in Ukraine since April 2023, and we are currently working on more than 15 new projects,” says Kaare Stamer Andreasen, a finance director at the Danish agency.
Deployed to Ukraine over two years ago, Andreasen has travelled the length and breadth of the country to review projects for war and credit risks. As a result, EIFO has been a key source of capital for long-term projects.
Earlier this year, EIFO guaranteed financing for a wind farm being developed near the front line in southern Ukraine’s Mykolaiv region.
European and Asian export credit agencies are set to play a major role in Ukraine’s reconstruction, which according to the World Bank will cost upwards of US$520bn over the next decade. Commercial insurers remain wary of the market due to ongoing war risks and longstanding concerns over corruption.
