The Finland–Ukraine Investment Facility (FUIF) is a Finnish development-policy instrument created for Ukraine’s reconstruction. It finances public-sector investments in Ukraine that use Finnish products, services, technology and expertise. Its structure is similar to Finland’s earlier Public Sector Investment Facility (PIF), but it is designed for faster processing.
How the financing works
- Ukraine takes an investment loan from a commercial bank. The Ministry for Foreign Affairs (MFA) negotiates credit lines with participating international credit institutions, and the exporter chooses one of them.
- The MFA pays all the interest on the loan and part of the investment cost, so that the 35% grant element required by the OECD is met.
- Finnvera gives a 100% guarantee on the loan (buyer credit guarantee).
- Ukraine bears the main responsibility for the cost of the project.
Key rules
| Requirement | Rule stated by the MFA |
|---|---|
| Eligible project owners | Ukrainian public sector: ministries, state agencies, municipalities, state-owned companies and other public enterprises |
| Finnish content | At least 33% of the investment value (as approved by Finnvera). The implementing company must be registered in Finland |
| Project size | In practice about €10–20 million. Banks do not lend less than €10 million; the MFA’s resources cap the size at about €20 million |
| Construction | Construction costs may not exceed 40% |
| Capacity building | At least 10% of funding for capacity building and sustainability |
| Agent commissions | Commission payments to agents preparing the project may not exceed 5% of total project costs |
| Commercial viability | The project must be commercially non-viable, i.e. not able to repay a commercial loan from its own revenue |
Typical sectors named by the MFA: renewable energy, electricity grids, digital services, meteorology, education, health, circular economy, water supply and waste treatment. No sector eligible for development aid is excluded.
The process, step by step
- Concept paper. A Finnish company or organisation, or a Ukrainian public-sector entity, submits a concept paper to the MFA (template on the MFA website).
- Assessment by the MFA together with Ukraine against eight criteria. These include development impact, Ukrainian ownership and priority, the capacity of the project owner and the exporter, project readiness, environmental, social and human-rights risks, and Finnish added value.
- Ukrainian prioritisation. A letter of support from the responsible Ukrainian entity is the minimum, but Ukraine makes the final selection based on its national priorities.
- Project document, prepared by the Ukrainian entity and the Finnish company with help from MFA-hired consultants.
- Final decision. This requires a positive MFA assessment, Ukrainian approval, a completed tender under Ukrainian law with a signed commercial contract, Finnvera’s guarantee decision, and a finance agreement between the bank and Ukraine’s Ministry of Finance.
Results so far – and why preparation matters
In the 2025 round, the MFA, Business Finland and Finnvera assessed the concept papers in March 2025. 32 were considered eligible and sent to Ukraine, and Ukraine selected four projects. They are included in Ukraine’s 2026 state budget:
- Meteorological service capabilities of the Ukrainian Hydrometeorological Center to support civil defence – €16.0 million
- Emergency distributed energy generation, Stage II, Poltava region – €11.4 million
- Stage III, Cherkasy region – €11.4 million
- Stage IV, Lviv region – €22.8 million
Four out of 32 eligible concepts shows how competitive the instrument is. Ukrainian ownership and national priority are decisive, and so is a concept mature enough to move quickly.
Check for new rounds: concept reviews have been run as rounds (e.g. “FUIF concept review 2025”). Check the MFA’s FUIF page for whether a new round is open.
Pending change: a new law on officially supported investment credits
FUIF is currently regulated by the 2000 Act on Concessional Credits Granted to Developing Countries. On 5 November 2026 the Government proposed a new act on officially supported investment credits to replace it. According to the Ministry for Foreign Affairs, the proposal would:
- allow such credits to be provided by Finnvera Group companies (Finnvera Plc and Finnish Export Credit Ltd) as well as banks and other credit institutions. This could make project financing easier, particularly for SMEs where private financing is insufficient;
- write a Finnish national interest requirement into law, in line with Finnvera’s current practice;
- clarify the rules on the grant element, credit risk coverage, supervision and clawback.
The MFA would remain responsible for granting the support. The proposal still has to pass through Parliament, so check the status before relying on the new rules.
Who is this relevant for?
- Finnish technology and service companies able to deliver a €10–20 million public-sector project with at least 33% Finnish content.
- Ukrainian municipalities, agencies and state companies looking for concessional financing with a Finnish partner.
Sources
Figures as reported by the sources on the dates shown.
- Ministry for Foreign Affairs of Finland – Finland–Ukraine Investment Facility
- Finnish Government – FUIF concept review 2025 open
- Finnvera – Joint Statement of Intent (mentions FUIF cooperation)
- Ministry for Foreign Affairs of Finland – Government proposes reform of legislation on financing investment projects in developing countries (5 November 2026)