Latvia joins EU initiative to bolster trade with Ukraine by offering export guarantees

• Latvia becomes one of ten EU countries participating in European push to support trade with Ukraine. 
• Latvian development finance institution Altum joins the InvestEU Ukraine Export Credit Guarantee Facility.
• Backed by EIF, initiative to support as many as 70 Latvian exporters.  

A European Union initiative to facilitate exports to Ukraine gained momentum today when Latvia joined. Latvia’s development finance institution Altum signed up to the InvestEU Ukraine Export Credit Guarantee Facility – a joint initiative of the European Commission and the European Investment Fund (EIF).

Under the facility, national export credit agencies in the EU offer guarantees to small and medium-sized enterprises (SMEs) and Mid-Caps exporting to Ukraine. The national guarantees are in turn backed by the EIF, which is part of the European Investment Bank (EIB) Group. 

Latvia is participating in the initiative along with nine other EU countries: Denmark, Finland, France, Germany, Italy, Romania, Slovakia, Slovenia and Spain. The goal is to encourage EU exports to Ukraine of goods such as machinery, construction materials and advanced technologies as well as services that are critical for the country’s economy and reconstruction amid Russia’s war.

“This is a real boost for Ukraine’s recovery, a win-win solution for its recovery and functioning of its economy. It enables EU companies to keep trading and investing in Ukraine when it matters most,” said EIB Group President Nadia Calviño.

The Ukraine Export Credit Guarantee Facility is providing a total of €300 million in EIF guarantees for the participating national export credit agencies. Latvia is receiving €7.2 million of the total. 

In addition to the ten participating EU countries, a further three Member States that have yet to be announced are scheduled to join the facility. It is projected to benefit more than 550 EU exporters including 70 in Latvia. 

“By joining the EU’s Ukraine Export Credit Guarantee Facility, ALTUM strengthens its role in supporting Latvian SMEs with export guarantees that open the door to Ukraine’s reconstruction market,” said Reinis Bērziņš, CEO of Altum. “This is a strategic opportunity for our companies to contribute to rebuilding a neighbouring economy while expanding their own business horizons.”

The Ukraine Export Credit Guarantee Facility advances Ukrainian efforts to integrate into the European single market and to become a member of the EU. 

“Backed by the EU budget, the facility supports EU businesses to continue and step up trade with Ukraine,” said European Commissioner for Economy and Productivity, Implementation and SimplificationValdis Dombrovskis. “It represents a significant step forward in further integrating the EU and Ukrainian economies, which is a crucial element of Ukraine’s accession process.”

Started in mid-2024, the facility generated immediate interest from EU businesses, ensuring demand for the full €300 million in EIF backing. The EIF support helps businesses to maintain existing exports to Ukraine and encourages new EU trade ties with the country.  

“Ukraine’s recovery depends not only on international aid, but on restoring and expanding real economic partnerships — partnerships based on trade, industrial cooperation, and shared long-term interests,” said Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine. “That’s why we welcome the strong commitment of EU Member States to support their exporters working with Ukraine. The Ukraine Export Credit Guarantee Facility is a strategic tool that helps businesses on both sides mitigate risks, unlock opportunities, and build confidence in Ukraine as a market that is open, resilient, and future-oriented.”

Background information

About Altum

 JSC Development Finance Institution ALTUM is a Latvia state-owned company that ensures access of the enterprises and households to the financial resources by means of support financial instruments – loans, guarantees, investments in venture capital funds – in the areas defined as important and to be supported by the state, thus developing the national economy and enhancing mobilization of the private capital and financial resources. The funding for implementation of state support programmes comprises both EU funds and national public funding as well as funding raised by ALTUM with international institutions and capital markets. 

State aid programmes administered by ALTUM, are implemented with public resources –European Union and other international institutions, national and ALTUM’s attracted financing. On 28 January 2025 Moody’s Ratings affirmed Altum’s Baa1 long-term issuer rating, with outlook stable. 

About the EIF

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF furthers key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability, and more. In Estonia, commercial banks such as Swedbank, SEB, LHV, Luminor, and Citadele have previously entered into similar agreements with EIF.

About InvestEU programme

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment. 

Press contacts

EIB Group

Kristiina Randmaa

M. +352 4379 72894, e-mail:  k.randmaa@ext.eib.org
Website: www.eif.org — press@eib.org

Altum

Sandra Eglīte

Head of Public Relations, ALTUM

Phone: +371 26577810

Email: sandra.eglite@altum.lv