The European Bank for Reconstruction and Development (EBRD) has announced plans to double its annual investment in Ukraine by increasing its capital by 4 billion euros. The move comes as a response to Russia’s invasion of the country and is aimed at providing significant and sustained investment for Ukraine’s future.
The EBRD, which has already invested 3 billion euros in Ukraine for 2022-2023, stated that its board of directors has recommended the capital increase to support Ukraine. The endorsement is the first step in the formal process to boost annual funding to 3 billion euros. If approved, the additional funds would be available from 2025.
The bank’s governors will make a final decision on the proposal by the end of the year. If approved, the capital increase would raise EBRD’s authorised share capital from its current level of 30 billion euros. This would mark the third capital increase in the bank’s history, following previous increases in 1996 and 2010.
The EBRD has been the largest institutional investor in Ukraine for the past three decades, and its support has significantly increased since Russia’s invasion last year. The bank’s decision to further enhance its investment in Ukraine underscores its commitment to the country’s economic development and recovery.
Ukraine has been facing significant challenges since Russia’s military aggression in 2014. The conflict has resulted in the displacement of thousands of people, economic instability, and infrastructural damage. The EBRD’s increased investment will provide much-needed financial support to help Ukraine rebuild and strengthen its economy.
The EBRD’s focus on Ukraine reflects its recognition that the country requires substantial assistance in the aftermath of the invasion. By doubling its annual investment, the bank aims to accelerate Ukraine’s economic recovery and foster long-term stability.
The EBRD’s decision has been met with anticipation and hope by Ukrainian officials. Minister of Finance Serhiy Marchenko expressed gratitude for the bank’s continued support, stating, “This significant increase in funding from the EBRD will greatly contribute to Ukraine’s economic growth and development. We are confident that this partnership will help us overcome the challenges we face and build a prosperous future.”
The proposed capital increase is expected to have a transformative impact on Ukraine’s economy. It will enable the country to invest in key sectors such as infrastructure, renewable energy, and small and medium-sized enterprises. This injection of funds will not only create jobs and stimulate economic growth but also improve the overall quality of life for Ukrainian citizens.
The EBRD’s commitment to increasing its investment in Ukraine demonstrates the importance of international support in times of crisis. The bank’s decision is in line with its mission to foster sustainable and inclusive growth in its member countries. By providing significant financial resources, the EBRD is playing a vital role in Ukraine’s recovery and future prosperity.
As the EBRD’s governors prepare to make their final decision on the capital increase, all eyes will be on the outcome. If approved, it will mark a significant milestone in the bank’s history and reaffirm its dedication to supporting Ukraine’s economic development.
More detail via Reuters here… ( Image via Reuters )