By KYIV. Oct 23 (Interfax-Ukraine) – The Board of Governors of the European Bank for Reconstruction and Development (EBRD) has agreed to work on a capital increase of EUR 3-5 billion by the end of the year to provide maximum support to Ukraine during the war and during the recovery phase, the bank said in a statement on Monday.
“If approved, could give the EBRD additional resources to invest,” the release notes.
According to it, after signing an agreement with the MHP agricultural holding to provide it with a $100 million loan to refinance eurobonds on Monday, the total amount of financing allocated to the real sector of the Ukrainian economy in 2022-2023 reached the level of EUR 3 billion planned for these two years.
“We are proud to have reached the target we set ourselves. But it does not mean the work stops here. The needs in Ukraine are huge, and we will continue to support the economy for as long as it takes during the conflict, in line with our current investment levels, which may increase further once there is peace,” said Matteo Patrone, EBRD Managing Director for Eastern Europe and the Caucasus.
As reported, in 2022 the EBRD allocated EUR 1.7 billion to Ukraine.
The Bank indicated that private sector support and trade support were two of the EBRD’s five priorities for wartime investment in Ukraine.
In particular, under the Trade Facilitation Programme (TFP), the bank has supported trade transactions totaling almost EUR 800 million since the start of the war, as well as more than EUR 700 million in new loans to municipalities and private companies operating in the agribusiness sector and other critical sectors of the Ukrainian economy.
Another theme is reinforcing the country’s energy security. With the support of donors, the Bank has provided EUR 520 million for the electricity transmission company Ukrenergo’s liquidity, linked to market reforms, and EUR 300 million to the energy company Naftogaz, as part of a package of EUR 500 million with donor support. In addition, at the Ukraine Recovery Conference in June, the Bank signed Memoranda of Understanding on providing EUR 600 million of new financing for Ukrenergo, Naftogaz and Ukrhydroenergo, the country’s hydropower entity.
On vital infrastructure, the EBRD has signed loans totalling EUR 250 million to Ukrainian Railways (Ukrzaliznytsya) to support its operations and upgrade the country’s railway links with the European Union to its west.
The EBRD is also improving road and rail supply routes in and out of Ukraine, to counter uncertainty over the main shipping routes through Black Sea ports such as Odesa, which have been affected by the war. The EBRD is providing EUR 182 million to upgrade a section of road between Lviv in the western part of Ukraine and Rava-Ruska on the Polish border, in line with the European Solidarity Lanes initiative to boost road and rail access, in which the EBRD is also investing EUR 300 million.
On food security, EBRD work has focused on improving Ukraine’s grain export facilities, as well as making finance available throughout the food chain and maintaining livelihoods.
