The European Bank for Reconstruction and Development (EBRD) provided record financial assistance of EUR 2.1 billion in 2023, while in the coming years it plans to finance Ukraine in the amount of EUR 1.5 billion annually, according to a press release.
“Investments in Ukraine during the war are planned to continue at around €1.5 billion per year, while the capital increase makes it possible to double this amount when the time comes for recovery,” the EBRD said in a statement.
Last year, the EBRD’s executives decided to increase the Bank’s paid-in capital by EUR 4 billion to EUR 34 billion to provide further support to Ukraine.
The bank reminded that Ukraine was provided with EUR 2.1 billion last year and EUR 1.7 billion in 2022, which allowed the EBRD to fulfill its goal of investing up to EUR 3 billion in Ukraine in 2022-2023 in October last year.
It is noted that donor funding to support the real sector of the country’s economy during this period amounted to EUR1.6 billion. It is specified that more than EUR409 million of this amount was allocated in 2023 alone.
“Almost half of the donor resources were provided by the European Union. Significant contributions were also made by individual donors, including Canada, Norway, Spain, and the Netherlands,” the release reads.
Moreover, last year, the EBRD allocated EUR 1 billion in the private sector, including EUR 600 million in loans through partner financial institutions in Ukraine and EUR 400 million under its Trade Facilitation Program.
The EBRD currently identifies five priority areas for investment in Ukraine: energy security, critical infrastructure, food security, trade and private sector support.
In addition to financing, the bank continues to support reforms in Ukraine, the implementation of which will facilitate further private sector investment and Ukraine’s further progress towards EU membership. The EBRD reportedly continued to work with the government and other state agencies on issues related to European integration and fulfillment of EU requirements during the above-mentioned time.
The Bank is also assisting Ukraine in preparing for the effective use of the large amounts of funding that will be needed during the recovery phase, and the EBRD, together with the European Investment Bank (EIB) and the World Bank, is helping ministries and agencies to develop institutional capacity, as well as providing technical assistance to the State Agency for the Reconstruction and Development of Infrastructure of Ukraine to establish an effective project office.
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