EBRD may invest up to EUR 15 billion in Ukraine over five years
Since the beginning of Russia's full-scale invasion of Ukraine, the European Bank for Reconstruction and Development (EBRD) has invested 3.8 billion euros in Ukraine's economy. Over the next five years, the EBRD may invest between 7.5 and 15 billion euros in Ukraine.
This was emphasized by EBRD President Odile Renaud-Basso during the Munich Security Conference, an Ukrinform correspondent reports.
According to Renaud-Basso, Ukraine's economy has recently stabilized, and even experienced significant growth. She called it "incredible and surprising" that in the face of war and economic instability, Ukraine's economy grew by 5% in 2023.
According to her, this was largely due to financial support for Ukraine from the outside, encouraging businesses to further invest in the country's economy. The EBRD President noted that it is obviously difficult to attract new foreign investors to do business in Ukraine. However, it is possible to stimulate business activity of Ukrainian companies as well as foreign companies already present in the Ukrainian market.
"Over the past two years, we have been able to invest 3.8 billion euros in Ukraine," Renaud-Basso said. She added that this is more than before, when an average of 1 billion euros was invested per year.
The EBRD President also drew attention to the resilience of Ukraine's banking system, noting that it can actively finance small and medium-sized businesses and support local companies that need help in obtaining working capital or investment.
Renaud-Basso emphasized the need to finance Ukraine's key infrastructure, particularly in the energy sector, and to improve the functioning of the communications system, including the railway system, to increase the capacity of Ukrainian exports to the EU.
In her opinion, it is now necessary to focus on short-term investments and to do so together with reforms, in particular, to improve the procurement system and fight corruption.
The EBRD President said that she had a "positive signal" for Ukraine: that in 2024 the bank would continue to invest in Ukraine's economy.
"Our estimate is that in the next five years, we can invest between 7.5 and 15 billion euros in the real economy," Renaud-Basso said, noting that the EBRD will do this in cooperation and coordination with other partners in the EU, donors and international financial organizations.
As Ukrinform reported, on February 1, in Brussels, all 27 EU leaders agreed to create a EUR 50 billion financial assistance fund for Ukraine in the EU's 2024-2027 multi-annual budget.
The decision was made despite repeated statements by the leaders of Hungary, one of the EU members, that the country could block this decision for Ukraine.