The EU-funded project worth some 3 million euro will begin at Putna monastery, in Bukovina, northeast Romania, and will last two years.

“The money will be used not only to restore and better preserve the monastery but also to improve its infrastructure,” Romania’s Deputy Prime Minister, Liviu Dragnea, explained on Thursday.

Putna monastery is one of the most important cultural and religious centres in Romania. Lying close to the border with Ukraine, it was built and dedicated by a Moldavian prince, Stephen, to give thanks to God after a victorious battle.

The story goes that Stephen went to the top of a hill and fired an arrow — wherever it fell the church would be built. A section of tree trunk containing the arrow hole is still kept in the monastery museum and a cross marks the spot from which the arrow was shot.

The monastery was completed in 1481.

Time, earthquakes and landslides have since caused significant damage to all the monuments in and around Putna monastery.

The Bukovina region lies on the slopes of the northeast Carpathian Mountains and adjoining plains. Today, it is split between Romania and western Ukraine.

The region is home to several “painted monasteries”, Putna included, famous for their exterior murals. The region is also known for its natural beauty and traditional cuisine.

In a related development, Romanian Orthodox Church on Friday said it had spent some 80 million euro on building a 107-metre-high cathedral, the tallest in south-east Europe.

The construction of the future cathedral in Bucharest is expected to be completed in 2016. About 15 per cent of the work is now done, the Church said.

The Church plans to borrow half of the needed money from banks and guarantee the loans against Church forests, buildings and other properties. Funds are also expected from donations and collection plates.

Similar donations have already been made or announced by public institutions, including the government. By law, the state is obliged to provide support for church construction and for the renovation of dilapidated buildings.

The Orthodox Church, which has seen a revival since Communism fell in 1989, remains the most trusted public institutions in Romania, according to opinion polls. But it has often been marred by allegations of corruption and nepotism.