The European Bank for Reconstruction and Development (EBRD) has committed to providing new funding and support for Ukraine during the Ukraine Recovery Conference (URC) in Berlin. This commitment follows the ongoing conflict and the recent damage to Ukraine’s energy facilities caused by Russian air attacks.
During the conference, the EBRD signed multiple financing and pre-financing agreements, bringing the total EBRD financing deployed in Ukraine to €4.5 billion. The Bank also secured over €600 million in de-risking and risk-sharing tools from the European Union and other development organizations.
As Ukraine is now a candidate for European Union accession, it has been struggling to maintain its energy infrastructure after sustaining extensive damage. In response, the EBRD has signed a Memorandum of Understanding with the Ukrainian government to provide €300 million in emergency support for the energy sector.
The European Union has agreed to provide €517 million to Ukraine through EBRD programs in support of the country’s economy and recovery under the theme of EU accession. Additionally, in the business development category, the EBRD has signed multiple transactions, including an equity investment in a renewable energy joint venture and several transactions with local banks to strengthen lending capacity for small and medium-sized enterprises (SMEs).
To support Ukraine’s cross-border trade, the US International Development Finance Corporation and the French development agency Proparco have expressed their intent to share the risk on the EBRD’s trade finance exposure in Ukraine to support the export and import of critical goods.
The EBRD has also joined the SME Resilience Alliance and partnered with Endeavor Global to launch Endeavor Ukraine, an initiative aimed at supporting high-impact entrepreneurs through mentoring, networking, and investment opportunities.
The Bank has signed municipal transactions and pre-financing agreements to support Ukraine’s cities and regions as they grapple with the fallout from the war, including financial packages to repair water infrastructure and upgrade district heating systems in various Ukrainian municipalities.
In the realm of human capital, the EBRD has launched a Human Capital Resilience Charter in partnership with the Ministry of Economy of Ukraine and Sweden’s Folke Bernadotte Academy (FBA) to support returnee workers and veterans in Ukraine’s wartime labour market. The EBRD has also joined the Skills Alliance for Ukraine and the Alliance on Gender-Responsive and Inclusive Recovery.
Finally, the EBRD has reaffirmed its partnership with USAID through the signing of an MoU to support Ukraine’s resilience and recovery objectives in energy, infrastructure, and finance.
Overall, the increased funding and support for Ukraine by the EBRD demonstrate a strong commitment to the country’s recovery and development amidst a challenging geopolitical landscape.