The EU and EBRD: A New Phase of Support for Ukraine

At the Ukraine Recovery Conference held in Berlin, an agreement was signed to allocate 517 million euros to Ukraine through the European Bank for Reconstruction and Development (EBRD), this is reported by the railway transport news portal Railway Supply.

This event marked an important step in the recovery of Ukraine’s economy and infrastructure, which have been damaged during the war.

Through the EBRD, the EU will channel funds to support new projects with Ukrainian cities, totaling 143 million euros.

These projects include funding and technical assistance that will be distributed among several important initiatives, contributing to Ukraine’s economic and social revival.

Main Funding Areas

According to the signed agreements, the EU will provide:

– 140 million euros in financial guarantees for the EBRD’s Financial Inclusion Recovery Program. This program will support small and medium-sized enterprises (SMEs) by providing them with access to necessary financing in difficult conditions.

– 30 million euros in blended grants and 7 million euros in technical assistance for the Competitiveness and Inclusion Program for SMEs in Ukraine, which will enhance the resilience of small and medium-sized businesses.

– 150 million euros in financial guarantees and 7.5 million euros in technical assistance for the Hi-Bar program, aimed at supporting climate change mitigation technologies, especially in the energy sector.

– 150 million euros in financial guarantees, 25 million euros in blended grants, and 7.5 million euros in technical assistance for the Resilience Program for municipalities, infrastructure, and industry, providing urgent support and promoting long-term reconstruction.

Specific Projects in Ukrainian Cities

At the conference, agreements were signed for financing municipal projects in Mykolaiv, Lutsk, and Kharkiv:

– Mykolaiv will receive up to 25 million euros for the restoration of water supply and port infrastructure. This project is also supported by grants from the governments of Spain and Denmark, as well as the E5P fund.

– Lutsk will receive up to 15 million euros for the modernization of the city’s district heating system, marking the first project in this area financed by the EBRD during the war. The project will include the use of heat pumps, which is a novelty for Ukraine.

– Kharkiv signed an agreement for preliminary financing, with similar agreements made with Kryvyi Rih and Kyiv for a total of up to 87 million euros.

These funds will be directed towards ensuring uninterrupted access to vital infrastructure services and mitigating the impact of recent attacks on heating and energy infrastructure.

Additionally, Zhytomyr will receive up to 16 million euros to improve public transport.

The EBRD has joined the Coalition for Resilient Municipalities, led by Germany

Signatories of the coalition commit to providing financial and technical support to improve municipalities’ access to financing and to promote the development of municipal infrastructure.

Additionally, at the conference, memorandums of understanding were signed with Ukrainian Railways and the Ministry of Infrastructure for a potential project worth 300 million euros.

This project includes co-financing for the purchase of electric locomotives and support for the regional water supply sector.

The EBRD continues its engagement with Ukrainian cities as part of its sustainable development programs.

Before the war, seven cities joined these programs, and their participation continues after Russia’s invasion of Ukraine.

Key new projects include:

– 40 million euros for liquidity support for Lviv and Dnipro.
– 15 million euros for Khmelnytskyi’s public transport operator.

Overall, the EBRD’s municipal projects portfolio in Ukraine consists of 44 projects with total financing of 955 million euros.

These projects cover district heating, water supply and wastewater treatment, solid waste management, public buildings, and urban transport.

Support during wartime and prospects

The EBRD, the largest institutional investor in Ukraine, has significantly increased its financing for the country following the outbreak of the full-scale war.

Since 2022, the bank has allocated over 4.2 billion euros, and EBRD shareholders have agreed to increase paid-in capital by 4 billion euros to continue investing in Ukraine during the war and to aid in its recovery.

The signed agreements and new initiatives underscore the determination of the EU and the EBRD to support Ukraine by providing necessary assistance for its recovery and modernization of key sectors.

The conference in Berlin was an important step towards the country’s economic revival and its further integration into the European Union.

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