The European Investment Bank plans to invest €80mn in the Amber Dragon European Fund for Ukraine, a flagship reconstruction and private-sector investment vehicle targeting infrastructure and businesses in the war-hit country, reported Ukraine Business News.

The Luxembourg-based lender said the fund aims to reach a total size of €500mn and will focus on strategic sectors including renewable energy, transport and digital infrastructure, as well as financing for private companies ranging from small and medium-sized enterprises to larger businesses.

The initiative forms part of the broader Team Europe framework designed to support Ukraine’s economic recovery and long-term reconstruction.

“The project is implemented within the framework of the Team Europe initiative and is aimed at supporting economic growth and the reconstruction of Ukraine,” the EIB said on its website.

The bank described the fund as a flagship initiative intended to strengthen Ukraine’s private sector through investments in infrastructure projects and direct financing for enterprises.

The project is backed by the European Commission and Team Europe, which includes 15 European bilateral development finance institutions operating collectively through the European Development Finance Institutions (EDFI) association, alongside the EIB and the European Bank for Reconstruction and Development.

The planned investment comes as international financial institutions and European governments increase efforts to mobilise private capital for Ukraine’s recovery, with officials estimating reconstruction needs will require hundreds of billions of euros over the coming decade.

Ukrainian investment group Dragon Capital, which is involved in the fund, has previously said it is prepared to invest €40mn of its own capital into the vehicle.

The fund is expected to support projects aimed at improving energy resilience, rebuilding transport links and modernising digital infrastructure, areas viewed as critical for sustaining economic activity during the war and accelerating post-war recovery.

International investors have shown growing interest in Ukraine-focused projects despite ongoing security risks, particularly in sectors tied to energy security, logistics and technology. European institutions have increasingly promoted blended financing models combining public guarantees, concessional funding and private investment to reduce wartime risks for investors.

The EIB has been one of Ukraine’s largest institutional lenders and has expanded support for the country since the war began in 2022, financing emergency repairs, energy infrastructure and municipal projects while working with European partners on longer-term reconstruction planning.