The European Investment Bank (EIB) approved two loans amounting to $730 million on Monday to help early recovery efforts in Ukraine and to support small and medium-size enterprises (SMEs).

The loans are part of EIB's plan to lend $3.6 billion to Ukraine over the course of two years.

A loan of $243 million will go to Ukrainian government controlled regions most affected by conflicts, including the Donetsk and Luhansk regions and surrounding areas. The loan will be used to restore public water, sanitation, heating and electricity services. It will also help to rebuild roads, railways and public buildings.

A loan of $487 million will be utilized to address the lack of financing in the private sector, specifically regarding SMEs. This loan is also a part of the effort to establish economic relations and trade between the European Union and Ukraine.

“The recovery of Ukraine and its economy is vital to improving the living conditions of Ukrainian citizens and to supporting the country as it deals with the consequences of the present difficult situation," EIB Vice President Laszlo Baranyay said.