The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are launching the “Ukrainian SME Recovery” program, which is expected to provide approximately EUR135 million in financing and advisory support for small and medium-sized enterprises, larger companies, and startups in Ukraine, the financial institution announced on its website.
EU support under the program is being implemented through the Ukraine Investment Framework (UIF) and amounts to EUR46 million, including EUR41 million in guarantees and approximately EUR5 million in technical assistance.
According to the announcement, the program provides for financing at least 15 investment projects by Ukrainian companies, as well as advisory support for up to 34 startups.
The first component of the program will be implemented through the EBRD’s Risk Sharing Framework (RSF) in collaboration with partner banks. EU guarantees will be used to cover the first-loss risks of the EBRD and partner banks on a parity basis.
According to the bank’s assessment, this will expand Ukrainian companies’ access to long-term financing, particularly for the restoration and expansion of production assets and capacity.
The second component involves expanding the EBRD’s Star Venture program in Ukraine, aimed at supporting high-potential startups and developing an innovative ecosystem.
Under this initiative, selected startups, accelerators, and venture capital firms will receive advisory support. The funding is intended to help early-stage companies cover operational and market development costs and enhance their readiness to attract commercial investment.
The EBRD is the largest institutional investor in Ukraine. Since the start of Russia’s full-scale invasion in February 2022, the bank has allocated nearly EUR10 billion to Ukraine.
Agricultural holding IMK has purchased 75 grain trucks using a loan from the European Bank for Reconstruction and Development, the company’s CEO Oleksandr Verzhikhovsky announced during a speech at the Grain Ukraine 2026 international conference on Thursday in Kyiv.
“We have strengthened our road logistics component, secured $13 million in financing from the European Bank for Reconstruction and Development, and purchased 75 grain trucks,” Verzhikhovsky said.
The head of the agricultural holding noted that starting in 2023, the company has been investing approximately $10 million annually in the modernization of equipment and production. In particular, the greatest attention is being paid to logistics.
Given that the company conducts all its exports by rail through deep-water Black Sea ports, in 2024–2025 it implemented its own project to purchase 300 grain railcars. The company’s investment in this project amounted to $22 million.
“This was the right decision, as it currently yields annual savings of about $3–4 million,” emphasized the head of the agricultural holding.
A presentation on the AMK website with data for May of this year indicates that its logistics fleet includes 129 grain trucks, 300 grain railcars, 672 units of agricultural machinery, and 326 other vehicles.
The IMK agricultural holding is an integrated group of companies operating in the Sumy, Poltava, and Chernihiv regions (northern and central Ukraine) in the crop production, grain elevators, and warehousing segments. Land bank: 115,000 hectares; storage capacity: 554,000 tons; grain and oilseed production in 2025: 838,000 tons.
IMK’s net profit in 2025 increased by 24% to $67.5 million, while consolidated revenue decreased by 10% to $190.5 million.
The European Bank for Reconstruction and Development (EBRD) has lowered its forecast for Ukraine’s real gross domestic product growth in 2026 to 2.2% due to the protracted war, but notes that macroeconomic stability has been maintained thanks to external support.
“This is slightly lower than the 2.5% forecast published in February, but should hostilities ease and post-war reconstruction begin, the forecast for 2027 remains unchanged at 4.0%,” according to the EBRD’s “Regional Economic Prospects” (REP) report, published on Wednesday.
The bank emphasizes that Ukraine is maintaining macroeconomic stability even in the fifth year of Russia’s aggressive war thanks to significant external financing. The outlook continues to depend largely on the course of the war and the availability of external financial support.
“The main downside risk to the forecast is linked to the energy crisis caused by the conflict in the Middle East, which could significantly worsen Ukraine’s already unstable energy situation,” the report states.
The EBRD attributes the slowdown in economic growth to 1.8% in 2025 and the weak start this year to ongoing wartime constraints: labor shortages and persistent attacks on energy infrastructure have disrupted industrial activity and logistics, while broader supply chain issues have limited production.
The bank notes that inflation has also begun to rise again after slowing to 7.4% in January 2026 following a period of tighter monetary policy and relative exchange rate stability. Higher global energy prices linked to the conflict in the Middle East are adding new pressure, increasing costs for businesses and households and contributing to a resurgence of inflationary momentum.
According to the EBRD, fiscal support remains crucial. Ukraine’s budget deficit, excluding grants, reached 23.6% of GDP in 2025 and is projected to remain elevated at 19.3% of GDP in 2026, reflecting exceptionally high spending on defense and social services. These needs are financed largely through official external support, which continues to underpin macroeconomic stability. The allocated external financing of over EUR110 billion for 2026–27 is expected to mitigate short-term risks.
The Bank notes that it is Ukraine’s largest institutional investor and has significantly increased its support in response to the full-scale war: since its onset in February 2022, the EBRD has allocated nearly EUR10.0 billion to Ukraine.
As reported, the National Bank lowered its GDP growth forecast for this year to 1.3% from 1.8% in April.
The government’s forecast, included in the 2026 state budget, currently projects 2.4% growth, but Economy Minister Oleksiy Sobolev recently announced plans to revise it downward.
According to the State Statistics Service, Ukraine’s GDP growth slowed to 1.8% in 2025 from 2.9% in 2024 and 5.5% in 2023, following a 28.8% decline in 2022—the first year of full-scale Russian aggression.
On April 17, the European Bank for Reconstruction and Development (EBRD) approved a EUR25 million long-term loan for the Rozetka corporate group, specifically EUR20 million for Rozetka.ua LLC in Ukraine and EUR5 million for Rozetka EU LLC in Poland, according to the financial institution’s materials.
As noted, EUR10 million of this amount is earmarked for financing the working capital of the group’s Ukrainian and Polish operations, and the bank may provide up to an additional EUR15 million for working capital and potential capital investments in Ukraine and Poland.
The project will receive partial first-loss risk coverage from the European Union under the Ukraine Investment Facility (UIF), which supports “green” investments in key economic sectors and promotes recovery during the war.
According to the bank’s assessment, the project will also contribute to the reintegration of veterans and other vulnerable groups, while the “green” component of the financing involves the purchase of energy-efficient household appliances.
The loan will provide the Rozetka Group with longer-term financing not available on the local market, support the early-stage development of its Polish operations, and help strengthen HR policies, skills development, and women’s participation in the company.
As reported with reference to YouControl, companies within the Rozetka corporate group generated a total of UAH 30.2 billion in revenue from January to September 2025, accounting for 76% of the total revenue of the 10 largest online retailers.
Rozetka was founded in 2005 in Kyiv by Vladislav and Irina Chechotkin. Later, a fund managed by Horizon Capital became a co-owner of the company. Currently, the company operates as a multi-category online marketplace and is developing a network of its own stores.
The European Bank for Reconstruction and Development (EBRD) is considering providing a long-term loan of up to EUR50 million to Volyn West Wind-2 LLC and Volyn West Wind-3 LLC, majority-owned by VI.AN Holding, a member of the OKKO Group, to finance the construction and operation of a 189 MW wind farm in Ukraine.
According to the bank’s materials, the EBRD loan will be part of the project’s secured debt financing, involving the International Finance Corporation (IFC) and the Black Sea Trade and Development Bank (BSTDB).
The project will also receive guarantee support and grant funds for technical assistance from the European Union under the Ukraine Investment Framework through the HI-BAR program, which reduces risks for investors and helps attract funding to renewable energy and climate technology projects.
Against the backdrop of significant losses in power generation capacity due to the war, this investment is expected to help reduce the electricity deficit, support decarbonization, and strengthen the private sector’s role in the development of renewable energy.
According to the bank’s estimates, the new wind farm will generate approximately 467 GWh of electricity annually and reduce CO2 emissions by about 300,000 tons per year. The total cost of the project is estimated at EUR 262 million.
The project is currently in the development stage, with approval expected on May 28, 2026.
OKKO Group brings together more than 10 diverse businesses in the fields of manufacturing, trade, construction, insurance, services, and other sectors. The group’s flagship company is the Galnaftogaz concern, which operates one of the largest gas station networks in Ukraine under the “OKKO” brand, comprising about 400 gas stations.
The founder and ultimate beneficiary of the group is Vitaliy Antonov.
As reported, in April 2025, the EBRD, IFC, and CEB announced a EUR157 million loan to the Galnaftogaz Group for a 147 MW wind farm in the Volyn region.
For the first time since the start of the full-scale war, the European Bank for Reconstruction and Development (EBRD) has provided the Kernel agricultural holding with $45 million in financing for a renewable energy project. The decision was approved by the bank’s Board of Directors and signed during the Ukraine-EU Business Summit in Brussels.
According to a statement from Kernel’s Communications, PR, and GR Department, the total cost of the project is estimated at $86 million. In addition to the EBRD, negotiations are ongoing with other international lenders, and Kernel will finance the remaining investment. The European Union will provide partial coverage of the first-loss risk under the Investment Facility for Ukraine (UIF).
The project involves the construction of a 106 MW solar power plant (SPP) in southern Ukraine and the installation of energy storage systems. The facility is expected to generate approximately 141 GWh of electricity from renewable sources annually and reduce carbon dioxide emissions by 82,500 tons. Once the transmission line is completed, the plant will be integrated into Ukraine’s Unified Energy System (UES) and will supply “green” electricity to the domestic market.
“The development of ‘green’ energy is one of Kernel’s key investment priorities. Today, Ukraine is acutely feeling a shortage of power generation, as large facilities remain vulnerable to attacks. Our response to these challenges is the development of distributed generation, particularly solar and wind power, as well as the implementation of energy storage systems. Connecting new capacity to the power grid is Kernel’s contribution to the stability and energy security of the entire country,” said Kernel CEO Yevgen Osipov.
Overall, Kernel’s strategy involves building a portfolio of green energy projects with a total capacity of up to 600 MW. The expected investment in this area is approximately $400 million.
The Ukraine Investment Framework (UIF) is an investment mechanism under the EU’s €50 billion Ukraine Facility program, aimed at rebuilding and modernizing Ukraine’s economy. Under the UIF, EBRD financing is backed by EU guarantees through the HI-BAR program, which reduces risks for investors and helps attract funding for renewable energy and climate technology projects.
Kernel Agri-Holding is the world’s largest producer and exporter of sunflower oil, Ukraine’s largest grain exporter, an operator of an extensive network of logistics assets, and a leading producer of grains and oilseeds in Ukraine. It is one of the largest producers and sellers of bottled oil in Ukraine. It is engaged in the cultivation and sale of agricultural products.
