EBRD commits up to €3 billion to Ukraine
The European Bank for Reconstruction and Development (EBRD) will commit up to €3 billion over 2022-2023 to help Ukraine’s businesses and economy keep functioning.
On a visit to Kyiv, EBRD President Odile Renaud-Basso told Ukrainian President Volodymyr Zelenskyy of the Bank’s determination to support Ukraine while it defends itself against Russia’s aggression.
Since the invasion began in February, the EBRD has committed more than €1 billion, and aims to triple that figure by the end of 2023. Its primary focus will be to support the “real” economy – maintaining energy and food security, restoring rail infrastructure, and supporting the pharmaceutical industry.
EBRD investment has already been made into Ukraine’s electricity company Ukrenergo, as well as providing up to €500m liquidity support for ‘Naftogaz’, the country’s main gas supplier. Discussions are also underway to scale up funding for urgent repairs of the electricity grid and to support municipal authorities in Kyiv, Lviv and Dnipro, says the EBRD.
EBRD investments are backed by donors or guarantors from EU and G7 countries, including the US. Norway recently pledged €200m in support.
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EU agrees extra €500 million of military support for Ukraine
The Foreign Council of the European Union reached political agreement for a 7th tranche of military support to Ukraine worth €500 million.
The Council also agreed on an additional assistance measure worth €45 million for the Ukrainian forces being trained by the EU’s military training mission, EUMAM Ukraine. This brings the total military support under the European Peace Facility to €3.6 billion. According to EU High Representative Josep Borrell, the EU’s military, financial, economic and humanitarian support for Ukraine has now reached nearly €50 billion.
Before the Council discussed Russia’s aggression against Ukraine, Ukrainian Foreign Minister Dmytro Kuleba addressed EU foreign ministers via video conference and briefed them on recent developments on the ground and on Ukraine’s current priorities.
Regarding the creation of an accountability mechanism, EU foreign ministers stressed the importance of preserving the crucial role of the International Criminal Court in international criminal justice and expressed broad support for the establishment of the International Prosecutor’s Office in The Hague as a first step.
Regarding the effectiveness of sanctions, Josep Borrell noted that Russian oil (Urals) sells for US $40 a barrel while Brent sells for US$80. “This means that the Russian oil is being sold at a discount of 50%, and it is being bought by mainly India and China,” said Borrell. “So, it is losing US$40 per barrel. It is a big hit on Russia’s financial stability.”
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EBRD opens information technology hubs in Georgia and AzerbaijanDelighted to have launched IT Hubs in Azerbaijan and Georgia, where we are now supporting the training of 280 students for their future employment with international ICT companies.The programme will boost the regional development, supporting the youth, and in case of Georgia, internally displaced persons and refugees from Ukraine.For Azerbaijan, this is the first project to be funded through a bilateral donor agreement between the Bank and the Government of Azerbaijan.We are implementing this project in partnership with Georgia’s Innovation and Technology Agency and the Centre for Coordination and Analysis of the Fourth Industrial Revolution Azerbaijan.
EBRD to support upgrade of up to 12 metro stations in Tbilisi
The European Bank for Reconstruction and Development (EBRD) will provide Tbilisi Transport Company with a loan of up to €50.6 million for financing the upgrade of up to 12 metro stations.
The agreement was signed on 17 January in the Georgian capital during a visit by Mark Bowman, vice President for Policy and Partnerships at the EBRD.
The new loan is a continuation of a broader effort, some of which aims to encourage people to switch from private to public transport. Improved lighting and ventilation and more energy-efficient escalators will improve the daily journeys of Tbilisians, while an overhaul of drainage systems will make the network more resilient to climate change.
With a population of 1.2 million, Tbilisi was one of the first cities to join the EBRD’s flagship Green Cities programme, which supports members in addressing their environmental challenges through sustainable investments and policies. The city was also one of the first to develop a Green City Action Plan (GCAP).
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Georgia Receives Around €55.6 Million from EBRD to Modernize Metropolitan Transport in Tbilisi
Agreements were signed today by and between Georgia and European Bank for Reconstruction and Development (EBRD) envisaging the modernization of metropolitan transport in Tbilisi.
Loan and Grant Agreements were signed by H.E. Lasha Khutsishvili, Minister of Finance of Georgia and Mark Bowman, EBRD Vice President for Policy and Partnerships during his working visit to Georgia held within the scope of a Caucasus Tour.
Financial resources in the volume of around 55.6 million Euros will be used for the rehabilitation of underground metropolitan stations in Tbilisi and refurbishment of escalators.
Project will be implemented by the Mayor’s Office in the Municipality of Tbilisi through Tbilisi Transport Company (TTC).
Mark Bowman, EBRD Vice President for Policy and Partnerships is visiting Georgia together with Matteo Patrone, EBRD Managing Director for Eastern Europe and the Caucasus (EEC).
This visit was preceded by a series of meetings held by H.E. Odile Renaud-Basso, EBRD President in Tbilisi in September 2022.
The current visit aims to review the upcoming projects of EBRD to be implemented both in the private and public sectors of the country.
EU to disburse first €3 billion of the €18 billion macro-financial support to Ukraine
Today, the European Union will disburse the first €3 billion of the €18 billion macro-financial support agreed in December. This was announced by the President of the European Commission, Ursula von der Leyen.
“Helping Ukraine meet its financing needs to face the Russian aggression is both crucial and urgent,” von der Leyen wrote on Twitter. “The Commission is acting with utmost speed and determination.”
The aim of this emergency assistance is to provide short-term financial relief, financing Ukraine’s immediate needs, rehabilitation of critical infrastructure and initial support towards sustainable post-war reconstruction, with a view to supporting Ukraine on its path towards European integration. The loans will have a 10-year grace period.
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