The European Bank for Reconstruction and Development (EBRD) is providing the VARUS Group retail chain with a $25 million loan to expand its retail operations and improve business sustainability, according to the EBRD press service.
This food security project, with a total value of $53.1 million, will receive a 22% first loss risk coverage provided by the EU under the Investment Facility for Ukraine (UIF) through the Municipal, Infrastructure and Industrial Resilience (MIIR) program. To date, the EU has allocated EUR 207 million in guarantees and grants to Ukraine through the EBRD under the Ukraine Investment Facility (UIF), 87% of which has been provided to the private sector.
The guarantee for Varus plays a crucial role in mitigating the heightened macroeconomic and geopolitical risks associated with the investment. The support is provided in recognition of the project’s alignment with the bank’s Green Economy Transition (GET) approach through energy-efficient modernization, the installation of renewable energy sources, and the improvement of sustainable logistics. It includes the installation of solar panels, high-efficiency lighting, and reversible split air conditioning systems with low global warming potential.
VARUS Group is the fifth largest food retail chain in Ukraine. The chain consists of 114 stores, most of which are located in the eastern part of the country, employing around 7,500 people. Despite the closure of some retail outlets due to the war, the group has opened new stores and been able to return to its pre-war size. The EBRD loan will enable further expansion of the VARUS network, the refurbishment and modernization of equipment in existing stores, the lease of a new warehouse, and the installation of photovoltaic systems to reduce dependence on the electricity grid.
Cooperation with the EBRD will help preserve Ukraine’s human capital and the livelihoods of workers despite the ongoing challenges of wartime through technical cooperation. The project will also benefit from a co-investment grant to optimize warehouse logistics, improve energy efficiency, and address urgent human capital needs.
Technical support is funded by the EBRD’s Multilateral Donor Fund “Action for Equality and Gender Equality” (A4EG), while project preparation and the co-investment grant are funded by the Japan-EBRD Cooperation Fund.
The European Bank for Reconstruction and Development (EBRD) has granted a loan of up to EUR50 million to Nova Poshta LLC, part of the Nova Group, to finance part of its capital investment program for 2025-2026.
According to the bank’s press release on Friday, the loan will be multi-currency with the option of drawing funds in hryvnia and euros and will consist of two tranches: the first tranche of EUR35 million will be provided upon signing, and the second tranche of EUR15 million will be reserved by the bank at its sole discretion.
According to the release, Nova Poshta’s development strategy supported by the loan includes improving physical infrastructure, optimizing and expanding the network, modernizing IT systems, improving energy management and restoring human capital, as well as decarbonization and wider access for women.
The total cost of the project is EUR69.1 million, according to the announcement.
The EBRD financing is guaranteed by a first loss guarantee covering 15% of the EBRD loan amount provided by the European Union (EU) under the Ukraine Investment Framework for Municipal Infrastructure and Industrial Resilience (UIF MIIR).
An investment grant of up to EUR1.5 million is also expected to be provided to support decarbonization and human capital restoration programs supported by the TaiwanBusiness-EBRD Technical Cooperation Fund and the Crisis Response Special Fund (CRSF).
According to the release, in 2024, Nova Poshta set a new record by delivering 429 million shipments, 16% more than in 2023, and the significant growth in demand, in turn, created a need for further expansion.
Nova Poshta is the main operating subsidiary of the Nova Group, which is owned by two Ukrainian businessmen, Vyacheslav Klimov and Volodymyr Poperechnyuk. It operates a network of over 39,000 service points and has around 33,000 employees in Ukraine, serving over 11 million customers every month.
The EBRD has been successfully cooperating with Nova Poshta since 2018, financing four of its projects during this time.
According to Nova Poshta’s financial report for the first quarter of 2025, its consolidated net income increased by 20.7% compared to the first quarter of last year, to UAH 14.3332 billion, while net profit decreased by 21.4%, to UAH 567.7 million. The ultimate beneficial owners of the company are Volodymyr Poperechnyuk and Vyacheslav Klimov.
The European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the European Commission are launching the Ukraine Facility for Infrastructure Reconstruction (Ukraine FIRST) with EUR 30 million in funding to help prepare public investment projects for the reconstruction of infrastructure in Ukraine.
“The new program will cover the preparation of public investment projects in Ukraine, providing technical assistance, including feasibility studies, environmental assessments, cost estimates, and procurement plans,” the EBRD press release said.
It is noted that in addition to initial financing, additional funds are also planned to be provided by EU countries, in particular the Netherlands and Italy.
The program consists of two components. One, managed by the EBRD, will pool donor contributions and provide grants from international financial institutions to support project preparation.
The second, under the leadership of the EIB, will provide expert advisory services: feasibility studies, technical designs, and procurement plans. They will cooperate with the project preparation department of the Ukrainian government.
The pilot project of the program will be a EUR160 million loan to the state-owned Ukrnafta for the development of distributed generation and the installation of 250 MW of capacity.
Another project will be technical support from the EIB in partnership with the World Bank and, possibly, the EBRD, to prepare investments in the reconstruction and modernization of the M-15 Odessa-Remy highway, according to the statement.
The Ukraine FIRST program was presented by partners at the Ukraine Recovery Conference 2025 (URC) in Rome. It is part of the Framework for Project Preparation initiative developed by the Ukrainian government and international partners last year.
The European Bank for Reconstruction and Development (EBRD) plans to provide a loan of up to EUR 50 million to Nova Poshta LLC of the Nova Group of Companies (GC) to finance part of its capital investment program for 2025-2026, with a focus on improving operational efficiency and supporting the company’s development strategy in Ukraine during the war.
“… includes improving physical infrastructure, optimizing and expanding the network, modernizing IT systems, improving energy management, and restoring human capital,” the bank lists the elements of Nova Poshta’s development strategy on its website.
It is noted that the loan will be multi-currency with the possibility of selecting funds in hryvnia and euros and will consist of two tranches: tranche 1 in the amount of EUR 35 million will be reserved from the moment of signing, tranche 2 in the amount of EUR 15 million will be reserved by the bank solely at its discretion.
The total cost of the project, according to the report, is EUR 69.1 million.
The EBRD reminds that Nova Poshta is the leading private postal and courier operator in Ukraine, with a network of more than 12,000 branches and 27,000 post offices and about 34,000 employees. Every month, the company provides services to more than 11 million customers in Ukraine.
This project, which has passed the final review stage and is awaiting approval, possibly in June, is the fifth in the history of relations between Nova Group and the EBRD.
It is noted that under the existing loan, in May 2025, the company informed the bank of a planned reduction of about 2,900 employees, which is less than 10% of the total number. The EBRD emphasizes that the analysis of this reduction process confirmed that the client complies with the terms of such collective dismissals stipulated in the loan agreement, provided a detailed description of the reduction process, has an effective grievance system and responds appropriately to them without any litigation, and has an effective process of interaction with the trade union, which is informed about the large-scale restructuring plan that will affect employees throughout 2025.
As reported, last August, the EBRD provided a EUR 70 million loan to Nova Group to finance its investment program for 2024.
According to Nova Poshta’s financial report for the first quarter of 2025, its net consolidated revenue increased by 20.7% compared to the first quarter of last year to UAH 14 billion 333.2 million, while net profit decreased by 21.4% to UAH 567.7 million. The ultimate beneficial owners of the company are Volodymyr Popereshnyuk and Viacheslav Klymov.
As noted by the Standard Rating agency, as of the beginning of April this year, with total accounts payable of UAH 13.51 billion, Nova Poshta used, in addition to long-term bank loans, resources raised from the issue of two series of bonds – E and F series of UAH 1 billion each.
The State of Serbia has signed an agreement with the European Bank for Reconstruction and Development (EBRD) to receive a loan of €50 million. The funds will be used to modernize centralized heating systems and improve their energy efficiency in various cities across the country.
The project aims to reduce energy consumption and harmful emissions, as well as operating costs for heat supply companies. The authorities emphasize that both institutions and ordinary consumers will feel the benefits.
As noted by Finance Minister Sinisa Mali, the signed agreement confirms Serbia’s strong commitment to the “green transition.” According to him, the project involves the reconstruction of heating substations, replacement of pipelines, installation of automation systems, and in some cases, the transition to environmentally friendly energy sources such as biomass or solar collectors.
Minister of Mining and Energy Dubravka Djedovic Handanovic added that the implementation of the project will ensure stable and high-quality heat supply in winter and will also help reduce dependence on imported energy sources.
The project will be part of a broader program to modernize municipal utilities, which the EBRD has already supported in the past. According to preliminary estimates, the modernization will reduce energy consumption by 25-30% in the upgraded systems.
EBRD representatives said they consider Serbia a key partner in the Balkans and will continue to finance sustainable projects in the energy, transport, and infrastructure sectors.
Source: https://t.me/
Changes made by the Ministry of Energy to the charter of NEC Ukrenergo with a provision on a qualified majority of votes for the appointment of the chairman of the board, has provoked a sharp reaction from the company’s creditor, the European Bank for Reconstruction and Development, threatening the loss of access to a €141 million loan and grant, as well as early repayment of the €533 million already received, according to Maksym Khlapuk, a member of the Verkhovna Rada’s energy committee (Holos).
“The Ministry of Energy has pushed Ukrenergo into a real, not technical, default. The amendments to the company’s charter, which the Ministry of Energy introduced to strengthen its influence over it, have already hit the financial stability of the critical energy infrastructure operator. Yesterday, the EBRD, referring to the Ministry of Energy’s order on amendments to the charter, emphasized its right to suspend the disbursement of loan funds and demand early repayment of the loan already provided,” Khlapuk wrote on his Facebook page on Saturday, publishing an excerpt from the EBRD’s letter to Ukrenergo and the Ministry of Finance of Ukraine dated June 6.
It points to the company’s failure to notify the bank in a timely manner of any changes to the charter and to provide an opportunity to comment on them.
Referring to the terms of the loan agreements, the bank emphasizes its right to suspend disbursements and send appropriate notices of early repayment of loans in connection with changes to the charter.
“This situation threatens Ukrenergo not only with the loss of access to further EBRD financing in the amount of EUR 141 million (EUR 77 million of unutilized loan balance and EUR 64 million of expected grant), but also with the need for early repayment of funds already received in the amount of EUR 533 million,” emphasized a member of the Rada’s energy committee.
He also notes that the restructuring of Ukrenergo’s debt obligations to holders of green sustainable development bonds, for which the company planned to raise $430 million on international capital markets under the DFC guarantee, is now under threat.
“This debt management operation should have been completed in early July, but its success directly depends on the support of international financial institutions. And, according to my information, the DFC has currently suspended any actions related to the restructuring of green bonds,” Khlapuk emphasized.
As reported, on May 19, the Ministry of Energy amended the charters of LLC “OGTSU” and “Ukrenergo” with a provision on a qualified majority of votes of the Supervisory Board for the appointment of managers instead of a simple majority. This means that four out of five members of the supervisory board (three of whom are independent) must vote for the head of OGTSU, and five out of seven (four of whom are independent) must vote for the head of Ukrenergo.
As commented to EnergoReform by the head of the Association for Energy Efficiency and Energy Saving, former head of the Department for State-Owned Enterprises and Corporate Rights of the State Property Fund of Ukraine, Oleksandr Vizir, the Ministry of Energy, as a shareholder of Ukrenergo had the right to amend the company’s charter, and the provision on a qualified majority of votes is completely legal from a legal point of view. However, he drew attention to the way in which this was done. “For example, as far as I know, the amendments to the charter were not agreed with the supervisory board of Ukrenergo, nor with the company’s creditors, which is a condition of loan agreements in most cases,” Vizir explained in a comment. Vizir expressed his conviction that this would also delay the appointment of the chairman of Ukrenergo’s board, which should have taken place long ago, since the members of the supervisory board – representatives of the state and the Ministry of Energy, as the appointing body – can now effectively block the candidacy of independent representatives.
“According to my information, the independent members of the supervisory board and the shareholder have very different views on who should head Ukrenergo. And in fact, changes to the charter regarding the voting structure for appointing the head in the midst of the competition give grounds for concluding that the shareholder cannot agree with the candidates selected by the supervisory board,” Vizir believes.
In his opinion, the Ministry of Energy also had no right to submit the charter for registration or authorize anyone to do so; the charter should have been registered by the head of the company, Oleksiy Brecht, as acting chairman of the board, or by a person with a power of attorney from Ukrenergo.
According to Energorforma, the supervisory board of Ukrenergo was scheduled to meet on June 4, but was unable to elect a chairman of the board.
EnergoReforma’s interlocutors familiar with the situation also pointed out that the Ministry of Energy did not consult with the Energy Community Secretariat on changes to the statutes of Ukrenergo and OGTSU certified by it, which also caused its negative reaction. They noted that the issue of changes to the statutes of the operators is already known to European institutions and creditors, who have asked the Ministry of Energy for explanations, and assumed that a position will be expressed soon. In their opinion, the Ministry of Energy needs to communicate this issue very carefully with all stakeholders and provide very convincing arguments “or abandon the proposed changes in order to save the situation.”
For his part, Ukrainian Energy Minister Herman Galushchenko, during Question Time in the Verkhovna Rada on June 6, explained that the purpose of the changes to the statutes of OGTSU and Ukrenergo was to strengthen the position of company executives vis-à-vis the NR.
“I believe that these changes are actually aimed at something else: to ensure the maximum independence of the supervisory board and to ensure that the relevant managers and members of the management boards can work in order to protect them from dismissal or other decisions by a majority vote,” he said.
The new supervisory board of Ukrenergo, formed at the end of 2024, includes Yuriy Boyko, Anatoliy Guley, and Oleksiy Nikitin as representatives of the state, as well as independent members Patrick Greichen, Luigi De Francisci, Jan Montell, and Eppe Kofod, who heads the NR.
NR Ukrenergo announced a competition for the position of chairman of the board on February 5, 2025, with applications accepted until March 14 inclusive.
A shortlist of three candidates for the position of chairman of the board was formed in mid-April. It included the acting head of the company, Oleksiy Brecht, its chief dispatcher and member of the board, Vitaliy Zaychenko, and another representative of the company, Ivan Yurik, who deals with Eurobond issues.
In connection with the submission by OGTSU CEO Dmitry Lippa of a statement on the early termination of his powers, the company will be temporarily headed by a member of the management board, operations director Vladislav Medvedev, until the completion of the competitive selection process. The deadline for accepting applications from candidates for the position of the next head of OGTSU was March 31.
