Ukraine Sub-Fund
Invest in Ukraine’s future
MSMEs in Ukraine are the backbone of their economy. We know these resilient businesses can make it through the uncertainty of conflict and thrive in the long-term.
But they need stable financing and technical support to recover and rebuild. Economic losses are immense, with total recovery and reconstruction needs estimated at several hundred billion euros.* Russia has, for example, damaged more than 20% of the total agricultural machinery and equipment stock** and millions of jobs have been lost.
We can respond rapidly - we have a ready-to-deploy structure. Since 2010, we have built a wide network of financial institution partners, with a strong presence in the vital agricultural sector. By the end of 2024, our total investment portfolio amounted to €41.3 million through six financial institutions. Since inception, EFSE has facilitated more than 6,000 loans worth €381 million to Ukrainian businesses and provided more than €13 million in Advisory & Capacity Building, including grants. We know we can quickly scale up financing.
We are determined to help Ukraine build a better future.

Working with our substantial investor base
Working with our substantial investor base
We can draw on our deep public investor base to quickly scale our recovery efforts
Our large first-loss capital basis is providing strong support. However, this is also a blended finance vehicle and aims to expand with investments from development banks and institutional investors.
We have ringfenced the Ukraine Sub-Fund’s activities to maintain the EFSE Regional Sub-Fund's risk profile and accommodate different investment goals.
Addressing the most pressing market distortions
Access to finance for MSMEs is deteriorating
Banks need to lend to struggling MSMEs, but the war has hurt their profitability and capitalization, due to the loss of assets, collateral and revenues. They no longer have the capital or the risk appetite.
This is leading to disrupted value chains, loss of inventories and higher costs. Many businesses are also facing the additional costs of relocation and repair works. MSMEs urgently need financing, advice and capacity building to adapt to this fast-changing environment.
Drawing on 15 years of expertise in the country, we have adapted our processes to a wartime economy to maximise impact. Our tailored approach promotes business continuity, MSME relocation, agricultural resilience, and a fast and impactful recovery.

Our investment structure can rapidly scale support
First, we draw on our wide network of local financial institution and sectoral partners, with a strong focus on the agriculture sector.
Second, we adapt our existing lending infrastructure to allow for faster deployment, flexibility and scalability. This is possible through our agile multichannel investment approach, which incorporates local-currency financing combined with tailored Advisory & Capacity Building and financing-linked grants. These tools are used to deliver impact across four key recovery verticals.
Combining our existing local expertise and financial institution network with an approach tailored to wartime conditions means we can both adapt quickly when circumstances change and lay the foundations for a better, more inclusive future.

Our multichannel investment approach is tailored to a challenging market context
Financing
Financing
For financial institutions
We provide stable, long-term local-currency financing and subordinated debt to stimulate lending to MSMEs.
Advisory & Capacity Building
Advisory & Capacity Building
For financial institutions and MSMEs
We train financial institutions in wartime resilience and give MSMEs and farmers advice on relocation, recovery and adaptation.
Financing-linked grants
Financing-linked grants
For MSMEs
We provide grants directly to MSMEs - small financial injections to increase MSMEs' bankability and business viability, and de-risk their financing projects.
Our multichannel approach is designed to meet four key recovery verticals
Information for potential investors
In respect of the United States of America, Canada, Japan or Australia or any other jurisdiction in which the distribution, offer, sale, transfer or resale would be prohibited by applicable law, no investment in notes/shares or other instruments of the Fund (or its sub-fund(s)) can be offered or made.