The European Union has unveiled a €2.3 billion funding package to support Ukraine’s reconstruction efforts, alongside the creation of a new fund aimed at boosting private investment in the war-torn country. European Commission President Ursula von der Leyen made the announcement on Thursday during a high-level conference in Rome, where Ukrainian President Volodymyr Zelensky was also in attendance.
Speaking at the event, von der Leyen emphasized that the funding initiative is designed to unlock up to €10 billion in investments. “Our goal is to rebuild housing, reopen hospitals, revive businesses, and secure energy,” she said. The funding comprises €1.8 billion in loan guarantees and €580 million in grants, with a strong emphasis on mobilizing private capital.
epa11944370 (L-R) EU Council President Antonio Costa, Ukraine’s President Volodymyr Zelensky and European Commission President Ursula von der Leyen arrive for an European Special Council meeting in Brussels, Belgium, 06 March 2025. The EU leaders are convening for a special summit to discuss ongoing support for Ukraine and enhance European defence. EPA/CHRISTOPHE PETIT TESSON
The initiative includes the establishment of a dedicated “European Flagship Fund for Ukraine’s Reconstruction” with an initial capital of €220 million. According to von der Leyen, the fund aims to become the world’s largest equity fund for post-conflict reconstruction and is expected to mobilize €500 million by 2026. Key sectors targeted include energy, transportation, critical raw materials, and dual-use industries.
Von der Leyen also noted that the EU has been Ukraine’s largest donor since the Russian invasion in February 2022, contributing nearly €165 billion in aid to date.
Urging Global Investment Amid Escalating War
Despite ongoing Russian missile and drone attacks, including a major overnight strike on Kyiv, European leaders urged private companies and investors not to delay their involvement in Ukraine’s reconstruction.
“It’s not a risk. It’s an investment in a country that has shown more resilience than any other,” said Italian Prime Minister Giorgia Meloni during the gathering, which brought together political leaders, business executives, and development organizations.
Italy’s Prime Minister Giorgia Meloni and Ukraine’s President Volodymyr Zelensky arrive to pose for a group photo within a meeting between the NATO Secretary General, the president of Ukraine, and leaders of E5 countries during a North Atlantic Treaty Organization (NATO) Heads of State and Government summit in The Hague on June 25, 2025. LUDOVIC MARIN/Pool via REUTERS
President Zelensky echoed the sentiment, emphasizing Ukraine’s strategic importance and technological capabilities. “Ukraine has some of the world’s most advanced drone technologies for both offensive and defensive use, and we’re ready to share that expertise with our partners,” he said. “What we’re building to protect Ukraine will also help protect Europe.”
Zelensky stressed that only nations and companies that have not supported Russia’s war effort will be welcomed to take part in rebuilding. “We will only welcome true partners,” he declared, without naming specific countries.
Post-War Peace Force Plans Under Discussion
On the sidelines of the conference, French President Emmanuel Macron and UK Prime Minister Keir Starmer revealed that plans are in place for a European peacekeeping force that could be deployed shortly after a ceasefire is reached.
France’s President Emmanuel Macron adjusts his tie as he poses for a family photo with Britain’s Prime Minister Keir Starmer, French Minister for Europe and Foreign Affairs Jean-Noel Barrot, Rachel Reeves, Chancellor of the Exchequer, French Interior Minister Bruno Retailleau, Britain’s Defence Secretary John Healey, French Minister of Armed Forces Sebastien Lecornu, Britain’s Secretary of State for Energy Security and Net Zero Ed Miliband during the UK-France Summit at 10 Downing Street in London, as part of his three-day state visit to the United Kingdom, Britain, July 10, 2025. REUTERS/Gonzalo Fuentes/Pool
“We have a plan ready to be implemented within hours of a ceasefire,” Macron said. Starmer described the proposals as “mature and designed with long-term security in mind.” The two leaders participated via video link from a NATO command base in Northwood, UK, where Macron is on an official visit.
“Pressure must be sustained to bring Putin to the negotiation table,” Starmer said. Macron called for intensified economic pressure on Russia to create a shift in its strategic calculations.
Rome Becomes Hub for Public-Private Cooperation
The Rome conference drew more than 100 official delegations, 40 international organizations and development banks, and over 2,000 business representatives, civil society organizations, and Ukrainian local authorities. A trade expo held at Rome’s modern “Cloud” convention center highlighted new collaboration opportunities.
British Prime Minister Keir Starmer and President of France Emmanuel Macron attend a plenary at the UK-France Summit, in Downing Street, London, Britain July 10, 2025. Yui Mok/Pool via REUTERS
This is the fourth such Ukraine recovery conference, following previous meetings in Lugano (2022), London (2023), and Berlin (2024).
According to estimates from the World Bank, the European Commission, and the United Nations, Ukraine’s recovery could cost up to $524 billion (€506 billion) over the next decade.
U.S. Role Still Unclear Amid Trump’s Involvement
Retired U.S. Lt. General Keith Kellogg, acting as special envoy for President Donald Trump, also met with Zelensky in Rome. While the broader success of Ukraine’s recovery and security plans will hinge on U.S. involvement, Washington’s current position remains uncertain.
As Ukraine’s reconstruction gains international momentum, the message from Rome was clear: Ukraine needs investment, Europe needs security, and both are intertwined.
