The European Commission announced on Monday the signing of a guarantee agreement with the International Finance Corporation (IFC) to support investments for the recovery of Ukraine.

"Through the agreement the European Union will provide up to EUR 90 million in financial guarantees to support investments in Ukraine to IFC, a member of the World Bank Group, as part of IFC's Better Futures Program (BFP)," according to a joint statement of the parties published in Brussels.

Private investment under the program is expected to exceed EUR 500 million across all sectors, including core infrastructure and goods production, promoting decarbonization and sustaining livelihoods, the document notes.

The European Fund for Sustainable Development Plus (EFSD+) is part of the European Union's investment framework. It supports public and private investment in partner countries around the world by providing financial guarantees, blended finance and technical assistance to promote inclusive economic development, Brussels explains.

Financial guarantees under EFSD+ are legally binding agreements under which the EU agrees to pay the amount due in the event of financial losses that creditors may face.