Total EBRD financing deployed in wartime Ukraine reaches EUR 7.6 bln
The European Bank for Reconstruction and Development (EBRD) has supported Ukraine with EUR 7.6 billion in financing since 2022 and aims to continue investing between EUR 1.5 billion to EUR 2 billion a year, the bank said in a press release on Friday, July 11.
"At the URC [Ukrainian Recovery Conference], the EBRD was active in all four of the conference's thematic dimensions: EU accession; private-sector business recovery; local, municipal and regional recovery; and social recovery and human capital," the bank said.
In the area of EU accession, the European Union (EU) agreed to provide EUR 540 million to Ukraine through EBRD programmes under its Ukraine Investment Framework. This will be used to boost the EBRD's lending to Ukrainian small and medium-sized enterprises, as well as to accelerate the development of renewable energy projects.
Ukraine will also receive extra European support for reconstruction through the new Ukraine Facility for Infrastructure Reconstruction (Ukraine FIRST), which will streamline the planning, financing and implementation of large-scale infrastructure projects. The EBRD, EU and European Investment Bank (EIB) are jointly providing EUR 30 million to the project preparation facility, which will be managed by the EBRD and EIB.
A EUR 160 million loan to Ukrainian state-owned oil and gas company Ukrnafta to finance 250 MW of small-scale gas-fired distributed power generation capacity around the country and boost the power sector's resilience in the face of heavy Russian attacks.
Two transactions with local banks – a EUR 185 million portfolio risk-sharing facility with Privatbank and an EUR 89.2 million portfolio risk-sharing facility with Ukrgasbank – that will together unlock up to EUR 900 million of new lending by the banks to businesses and households.
A EUR 100 million financial package to agribusiness products producer MHP with British International Investment and Sweden's Swedfund, of which the EBRD is lending EUR 40 million. A EUR 50 million loan to Ukrainian postal and courier operator Nova Post to finance its 2025-26 investment plans and continued growth. A $ 25 million loan to Ukrainian food retailer Varus to finance its sustainable, energy-efficient expansion.
A EUR 6.5 million equity investment in FlyerOne Ventures Fund V – a venture capital fund that will invest in early-stage tech companies from Ukraine and across central and eastern Europe. Together with the International Finance Corporation, the EBRD plans to further develop investable private equity initiatives with Ukrainian fund managers to mobilise capital.
The EBRD said that to unlock new renewable energy capacity in Ukraine, the EBRD and development partners are creating a mechanism that will incentivise investments in renewable energy by stabilising revenues for developers. Named the Ukraine Renewable Energy Risk Mitigation Mechanism, it is expected to support up to 1.5 GW of new renewable energy projects, potentially mobilising EUR 2 billion in investments. The Bank also intends to lend EUR 60 million to Galnaftogaz to develop wind energy projects, having signed a mandate letter with the developer at the URC.
To advance the development of capital markets, the EBRD signed a memorandum of understanding (MoU) with the National Bank of Ukraine, Ukraine's Ministry of Economy and Ministry of Finance, and the National Securities and Stock Market Commission supporting the creation of a more effective, vertically integrated capital market infrastructure.
Additionally, to help Ukraine's cities maintain the provision of essential services amid the ongoing war, the EBRD signed new commitments with local municipalities. A EUR 25 million loan to the city of Dnipro to finance energy-saving measures in public buildings. To complement this, the EBRD intends to support the opening of a new Superhumans clinic in the city, which will deliver comprehensive medical and rehabilitation care to war-affected military personnel and civilians. The Bank's investment is expected to benefit from donor support from the Netherlands.
A EUR 10 million loan to Lviv to rehabilitate two wastewater plants, and a EUR 10 million emergency liquidity loan to Kharkiv to mitigate the effects of the war on the city's financial position and ensure uninterrupted essential municipal services. A pre-financing agreement with the city of Kyiv that consolidates plans for a EUR 150 million loan for new metro trains.
Agreements to finance new trolleybuses in Ternopil and Mykolaiv, which are benefiting from donor support from the EU, Spain, Canada, Italy and the United States.
MoUs with the Ministry for Development to cooperate on creating a pipeline of priority road infrastructure projects and with the Ministry of Agrarian Policy and Food to invest in sustainable irrigated agriculture to boost crop production. The EBRD is exploring restoring two old irrigation systems near Odessa to support food security for Ukraine's future reconstruction.
Under the umbrella of human capital, the EBRD and Ukraine's Ministry of Economy launched a new Human Capital Resilience Charter to help employers support returnee workers and veterans in meeting the challenges they face in the wartime labour market. The EBRD joined major Ukrainian employers in signing the charter.