Ukraine: strengthened cooperation

Established through the signing of a bilateral agreement in 2023, after one year of war, Luxembourg’s cooperation with Ukraine has naturally aligned with national priorities, namely the restoration of essential services, the reconstruction of destroyed infrastructure, economic recovery, and the strengthening of local authorities’ capacities. It was significantly reinforced in 2025 due to the continuing deterioration of the security and humanitarian situation.

In 2025, Luxembourg's total financial contribution managed by LuxDev amounted to EUR 30.5 million, making Ukraine the Agency’s leading country of intervention in terms of financial volume.

Russian attacks targeting critical infrastructure intensified in 2025, causing electricity, heating and water outages, and increasing the vulnerability of the population. In response, Luxembourg doubled its disbursements compared to the previous year in order to invest heavily in the energy sector.

Through LuxDev, the Grand Duchy has contributed to the Ukraine Energy Support Fund – established under an agreement between the European Commission and the Ukrainian Ministry of Energy – to finance the repair of damaged infrastructure and the purchase of essential equipment needed to maintain energy supplies. These substantial investments enabled the provision of 47 generators and 73 solar installations (including batteries and panels) to Ukrainian energy companies.

At the same time, an energy component was integrated into the Support for recovery of Kryvyi Rih Raion project. Guided by the ‘build back better’ principle, this intervention aims to restore essential services and bolster the resilience of a region with more than 700,000 inhabitants, including many internally displaced persons and veterans. Its approach is therefore centred on four priorities: supporting economic recovery – through vocational and technical training, support for entrepreneurship and access to finance for MSMEs –, improving access to quality education for children aged 3 to 17, strengthening local governance, and reinforcing energy resilience.

In 2025, the funds raised enabled to support 200 businesses, create 269 jobs, and train young people in key sectors such as demining.

In addition, in response to the destruction of school infrastructures, prolonged learning disruptions, and persistent insecurity, the project refurbished 28 school shelters, distributed 12,000 laptops and launched 18 digital learning centres in schools across the district. These centres, which have benefited 1,964 students, transform familiar spaces into safe, modern environments conducive to hybrid learning and gradual integration of digital technology into education.

Mindful of the psychological challenges raised by the war, the project also equipped 24 motor and sensory rooms, which are essential for reducing children’s anxiety in the face of conflict-related trauma. These tangible results reflect an integrated approach aimed at facilitating a return to in-person teaching while ensuring educational continuity through digital solutions.

The year was also marked by the launch of two innovative initiatives: the CatchUp project, focused on helping students most affected by school disruptions to catch up on their learning, and UActive, designed to develop civic skills, leadership, and project management abilities among teenagers from frontline regions, enabling them to play an active role in the reconstruction of their country.

Inna NETYS joined the UActive programme launched by the savED foundation as part of the Support for recovery of Kryvyi Rih Raion project. She describes the benefits of this initiative in a daily life marked by war.

The project to support the recovery of the Kryvyi Rih district will continue along the same lines over the coming months. Additional support for the energy sector is planned, including a EUR 2 million allocation for a second emergency response, as well as a study aimed at strengthening the coordination of interventions in this sector across the district. Efforts to promote local economic recovery will continue, with a second round of support for businesses and targeted assistance for young people and veterans.

At the same time, the Agency will further develop psychosocial support services and strengthen local governance through the signing of memoranda of understanding with municipalities, the creation of an MSME observatory, and the establishment of a technical assistance facility for project preparation. These directions confirm a clear trajectory: supporting immediate resilience while consolidating the foundations for sustainable reconstruction.