Italy Joins Donor Efforts with €10 Million Grants to Boost EBRD Operations in Ukraine

Italy Joins Donor Efforts with €10 Million Grants to Boost EBRD Operations in Ukraine

(IN BRIEF) Italy and the European Bank for Reconstruction and Development (EBRD) have teamed up to support Ukraine and its people during the ongoing conflict. Italy has pledged grants worth up to €10 million to support the EBRD’s operations in Ukraine, particularly for the electricity transmission system operator Ukrenergo. The EBRD has been focusing on providing working capital and grants to state-owned energy companies Ukrenergo and Naftogaz to ensure the provision of vital energy services. Italy joins several donors who have made €1.4 billion available to keep the Ukrainian economy functioning and ensure energy security, adequate transportation, and support for small businesses, among other things. The EBRD is committed to providing €3 billion of financing over 2022 and 2023 to help keep Ukraine’s businesses and economy functioning.

(PRESS RELEASE) LONDON, 2-May-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, and the government of Italy have partnered to support Ukraine and its people during the ongoing conflict and beyond.

As a strategic partner and founding member of the EBRD, Italy has signed an agreement to provide grants of up to €10 million to support the Bank’s operations in Ukraine, specifically to bolster the electricity transmission system operator, Ukrenergo.

To ensure the provision of vital energy services to affected individuals and businesses, the Bank has been providing working capital and grants to the two leading state-owned energy companies, Ukrenergo and Naftogaz. The funding from Italy will help provide Ukrenergo with liquidity and facilitate emergency repairs.

The EBRD has vehemently condemned the Russian invasion of Ukraine from the outset and has responded swiftly by providing financing and assistance where needed most. The Bank has continued to disburse funds to its clients by providing working capital and enhancing the Trade Facilitation Programme to provide extra support for importing and distributing essential goods. The Bank’s support for Ukraine is aimed at addressing five key areas: trade finance, energy security, vital infrastructure, liquidity provision to municipalities, food security, and support for the private sector.

Matteo Patrone, EBRD Managing Director for Eastern Europe and the Caucasus, said: “The EBRD is encouraged by Italy’s strong cooperation and contribution, which allows us to continue our efforts in supporting the Ukrainian economy during wartime and beyond.”

Italy joins several donors who have responded to the financial and technical support needs brought about by the conflict through the EBRD, with a generous €1.4 billion made available to date. This funding aims to keep the Ukrainian economy going and ensure energy security, adequate transportation, and support for small businesses, among other things.

The EBRD is committed to supporting Ukraine and its real economy at a time when the country needs it the most, with plans to provide €3 billion of financing over 2022 and 2023 in partnership with international donors to help keep Ukraine’s businesses and economy functioning. In 2022, the EBRD provided €1.7 billion in support of Ukraine and mobilized €200 million directly from partner financial institutions. With more than three decades of experience operating in Ukraine, the EBRD is the country’s largest institutional investor.

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SOURCE: EBRD