EBRD boosted investment in Ukraine to EUR 1.2 Bl
The Bank points out a record amount of funding disbursed in 2014 and intensification of the political dialogue. In response to the difficult macroeconomic conditions and geopolitical situation in Ukraine in 2014, the European Bank for Reconstruction and Development (EBRD) boosted investment to more than EUR 1.2 Bl under 36 projects in the public and private sectors. This is the greatest annual amount of finance since 1993, when the Bank started its operation in Ukraine, the EBRD press release says. Significant investments were made in the gas transportation and motor road sectors, municipal and agricultural infrastructure, and agricultural production. More than EUR 300 Ml was funneled into the financial sector (mainly to support funding of trade operations) and the infrastructure domain. The latter included projects for the reconstruction of roads, utilities, and sea port infrastructure. In the agribusiness sector, existing and new customers received more than EUR 250 Ml of funding. Another almost EUR 160 Ml was disbursed for various energy projects, involving both conventional and alternative generation. The Bank also began to implement a special EUR 150 Ml-worth program to support its existing customers. The EBRD management approved an additional EUR 350 Ml contribution by the Bank to complete the construction of a new safe confinement at the Chernobyl nuclear power station. EBRD shareholders also created a multi-donor stabilization and sustainable development account for helping Ukraine to reform its economy, improve the business climate, and return to the way of sustained growth. EBRD noted that money from this account should be used first of all for improving the investment climate and combatting corruption, stabilizing the banking sector, increasing energy security, enhancing the private sector’s competitiveness, and upgrading municipal infrastructure. At the end of last year, the Bank opened its second Ukrainian office in Lviv, whose main function will be providing support to small and medium-sized enterprises in the form of relevant expert advice. EBRD is the largest financial investor in Ukraine. Overall, the Bank disbursed EUR 10.4 Bl of funding within the framework of 344 projects in Ukraine by January 1, 2015.