Spain Unlocks €570M to Back Ukraine’s Reconstruction

Spain has unlocked €570 million ($652 million) to support Spanish companies participating in Ukraine’s reconstruction.

This was announced by First Vice President and Minister of Economy Carlos Cuerpo in an exclusive interview with The New Voice of Ukraine (NV) during an official trade visit to Kyiv on Wednesday. The Spanish delegation, accompanied by roughly 50 companies, represents Madrid’s largest corporate mission to Ukraine since the beginning of Russia’s full-scale invasion in 2022.

“In addition, it was agreed that Spain will increase its bilateral defense support to €1 billion [$1.1] during 2026,” Cuerpo said, adding that “we are fulfilling this commitment, and this amount is effectively added to the €4 billion [$4.6] already allocated.”

Spain among NATO’s largest donors

Spain’s total military aid to Ukraine from 2022 to 2026 will amount to €3.8 billion ($4.4 billion), including the latest €1 billion, making Spain the eighth-largest donor among NATO members and fifth in the European Union, according to Cuerpo.

According to United24Media, Spain launched these initiatives in order to help determine, together with Ukrainian authorities, the priority areas where this financing should be directed.

Financial tools to reduce investment risk

Part of the package involves expanded guarantee mechanisms designed to lower risks for Spanish businesses entering Ukraine’s war-affected market. 

Spain’s Export Credit Insurance Agency, Cesce, raised its export risk coverage for operations in Ukraine more than eightfold, from €30 million ($34 million) to €250 million ($286 million). The state-backed development institution COFIDES also launched a €100 million ($114 million) credit line targeting Spanish investments in defense, energy, transport and water infrastructure, according to United24Media.

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Separately, Spain’s Official Credit Institute and Raiffeisen Bank Ukraine created a €20 million ($23 million) credit line to help Ukrainian small and medium-sized businesses partner with Spanish firms.

Meanwhile, Spain’s Fund for the Internationalization of the Enterprise raised its Ukraine allocation to €200 million (roughly $229 million), which is already backing four active recovery projects.

Bilateral agreement tracing back to March

That €200 million ($229 million) allocation stems from an international agreement signed during President Volodymyr Zelensky’s visit to Madrid in March, which simplified financing terms and reduced bureaucratic obstacles, according to Cuerpo.

“This is a very concrete result, and we will sign the second stage of this agreement within the next few months,” Cuerpo said, adding that the deal must still pass through the Spanish parliament to maintain favorable financing conditions. 

Joint missile production

Part of the additional €1 billion defense package will go toward joint missile and guidance-system production between Spanish and Ukrainian manufacturers, Cuerpo explained. 

He added that more than 9,000 Ukrainian troops have trained under Spanish leadership as part of an EU mission, and that Spain has repeatedly supplied Patriot interceptors, generators, ammunition and anti-drone systems to Ukraine.

“In addition, we are running a rest program program for the families of Ukrainian servicemen at our military residence in Castellón,” Cuerpo told NV, adding that “about 800 family members have already had the opportunity to relax there.”

In March, Spain announced it will deliver five Patriot PAC-2 missiles to Ukraine. Just a month later, Spain confirmed it is delivering 100 VAMTAC armored vehicles and 155-millimeter ammunition to Ukraine, reinforcing its long-term military support. Shipments began in May.

Spain’s expanding commitment to Ukraine comes even as its trade relationship with the United States grows strained. Most recently, US President Donald Trump ordered the US to cut off all trade with Spain during the NATO summit in Ankara on July 7-8, calling Spain “a terrible partner.” Spain dismissed the remarks as “business as usual.”

On a separate occasion in March, Trump told reporters that the US is “going to cut off all trade with Spain. We don’t want anything to do with Spain.”