Spain makes €570 million available in financial instruments to enable Spanish companies to participate in Ukraine's reconstruction

Spain has reaffirmed its commitment to the reconstruction of Ukraine during the visit to Kyiv by the First Vice-President of the Government of Spain and Minister for Economy, Trade and Business, Carlos Cuerpo, during which agreements were signed to mobilise €570 million in financial instruments to facilitate the participation of Spanish companies in the country's priority projects.

The Vice-president is in Kyiv, accompanied by around fifty Spanish companies, to strengthen ties with the Ukrainian market and authorities. The visit has yielded tangible results, with the signing of public and private agreements between Spain and Ukraine to boost Spanish investment in the country.

New sources of funding, risk coverage and investment

Measures being implemented include increasing a risk coverage line for Spanish companies engaged in export or internationalisation operations in the country from €30 million to €250 million. Cesce's cover is essential, as it provides the necessary insurance to cover potential risks arising from the state of war in the country. Cesce's commitment places it - in absolute terms - among the leading European export credit agencies.

Meanwhile, COFIDES has established a facility of up to €100 million to support Spanish private-sector investment projects that generate tangible benefits for Ukraine. This programme will focus primarily on strategic sectors such as defence, energy, infrastructure, transport, water and agribusiness, whilst retaining the flexibility to consider other opportunities that contribute to the reconstruction of Ukraine.

Furthermore, the Official Credit Institute (ICO) has signed an agreement with Raiffeisen Bank Ukraine to open a credit line, guaranteed by Cesce on behalf of the Spanish State, worth €20 million, aimed at small Ukrainian businesses carrying out projects in partnership with Spanish companies in Ukraine.

To supplement these funding schemes, the Fund for the Internationalisation of Business (FIEM) has increased the amount of funding that can be specifically allocated to the country to €200 million. Four projects have already been launched under this programme, including the financing of a strategy to safely restore the air traffic management and communications system at Ukraine's main airport; this agreement was signed during the visit and the project will be carried out by the Spanish company ALG in collaboration with UkSATSE, the state entity responsible for providing air navigation services in the country.

"Through these initiatives, the Government of Spain aims to consolidate the presence of Spanish companies in Ukraine's reconstruction process and to help identify, together with the Ukrainian authorities, the priority areas to which this funding should be allocated," said the Vice-president of the Government.

To facilitate the implementation of these financial instruments, a Letter of Intent was signed today, paving the way for a new international agreement in this area; additionally, a joint declaration was signed regarding Spain's participation in the 'Industrial Ramstein' instrument, which was created to facilitate the import of capital goods for Ukrainian companies affected by the attacks.

Strengthening economic and trade ties with Ukraine

In an unprecedented move, the First Vice-President of the Government of Spain and Minister for Economy, Trade and Business has travelled to Kyiv, accompanied by around fifty Spanish companies, to foster closer ties with the Ukrainian market and authorities.

This is the largest Spanish business mission to Ukraine since the start of the full-scale Russian invasion. This participation reflects Spanish companies' growing interest in the Ukrainian market and greater confidence in the country's long-term recovery. The companies operate in priority sectors such as strategic industries, renewable energy, rail, communications and digitalisation, as well as agribusiness.

The companies took part in the Spain-Ukraine Business Meeting, organized by the State Secretariat for Trade - through the Spanish Office for the Reconstruction of Ukraine, the Spanish Economic and Commercial Office in Ukraine, and ICEX - alongside the CEOE and the Spanish Chamber of Commerce, and in collaboration with Ukrainian authorities.

The meeting, opened by the First Vice-president, Carlos Cuerpo, and Ukraine's Minister for the Economy, the Environment and Agriculture, Oleksii Sobolev, provided an opportunity to discuss areas of mutual interest, such as project financing, the protection of critical infrastructure and improving the business climate. It also served as a platform for Spanish and Ukrainian companies to maintain direct contact and explore specific business opportunities.

Today also saw the launch of the Spain-Ukraine Business Council, initiated by the Chamber of Commerce, as a channel for dialogue between the private sectors of both countries and as a means of building on the contacts established during the visit.

The 5th Spain-Ukraine Joint Committee, the main institutional forum for economic dialogue between the two countries, is due to take place tomorrow, Thursday. The fact that this Commission is meeting in the Ukrainian capital, against the backdrop of the war, reflects Spain's desire to strengthen its economic and trade ties with Ukraine and to demonstrate its support on the ground.

Non official translation