By Lucia Sconosciuto
The EBRD and the United States of America have joined forces to respond to the impact of the war on Ukraine. With a contribution of US$ 500 million to the EBRD Crisis Response Fund, the USA is confirming its strong commitment to support Ukraine through the Bank’s Resilience and Livelihoods Framework.
The funding comes in the form of grants to support investment. It marks a significant milestone in the Bank’s fundraising efforts, which have mobilised some €1 billion for Ukraine and affected countries so far.
The United States of America is a founding member of the EBRD, the Bank’s single largest shareholder and a very important contributor to its work. Prior to this new contribution, its donor funding had totalled more than €153 million(US$155.4illion).
EBRD President Odile Renaud-Basso said: “This is an extraordinarily generous contribution and we are humbled by the confidence that the United States, our single largest shareholder, has put in us. The contribution agreement we are signing today between the USA and the EBRD has come at exactly the right time. We will start deploying it in Ukraine and neighbouring countries as soon as we can.”
US Assistant Secretary for International Trade and Development Alexia Latortue said: “This contribution reaffirms our support for the people of Ukraine as they defend their country from Russia’s unprovoked and unjustifiable war. It is a signal of our solidarity with countries affected by Putin’s war of choice, which has increased food insecurity and raised energy prices around the world, particularly in developing countries. The United States is proud to support EBRD in its vital role, and in assisting the Government of Ukraine in bolstering Ukraine’s private sector — positively impacting the lives of Ukrainians”.
The EBRD has a unique role to play in this crisis. After more than 30 years of promoting economic transition in Ukraine, the Bank’s emergency response to the war focuses on support for the country’s economy today and preparing for reconstruction in future.
The Bank’s actions complement those of other international financial institutions helping the Ukrainian government, as well as those of humanitarian agencies.
The EBRD will match the new resources provided by donors with donor funding from its own capital.
The funding will go towards trade finance to maintain the flow of essential goods, to ensuring energy security, providing emergency liquidity to small businesses, pharmaceutical companies and vital transport providers, and to enabling Ukrainian municipalities to maintain basic public services for citizens.
Critically, the EBRD is targeting food security through substantial support for the Ukrainian agricultural sector for planting, crop maintenance, harvest and food supply.
The funding will also be used to help refugees in neighbouring countries and to assist the municipalities hosting them.
To prioritise and efficiently manage donor resources entrusted to the Bank in support of Ukraine and neighbouring countries, the Bank has set up the EBRD Crisis Response Special Fund to channel donor support.
Ukraine is one of the Bank’s largest recipients of investment. From the beginning of the war in February, the Bank has moved swiftly, from condemning the Russian attack on Ukraine, facilitated by Belarus, to preparing an immediate financial response.
Its assistance aims to ensure the resilience of Ukraine and the countries that are welcoming refugees, combined with a plan for the country’s reconstruction when circumstances allow.
So far, the EBRD has invested €650 million in response to the war on Ukraine and is on track to utilise €1 billion by the end of the year.
