Development finance institutions from around the world –including Proparco– are extending their preparations to support Ukraine’s reconstruction, with the European Bank for Reconstruction and Development (EBRD), signing a Memorandum of Understanding to provide a framework for collaboration when making co-investments in Ukraine, mainly in the private sector.
This agreement, signed during the Ukraine Recovery Conference in London, delivers on an initial commitment by the EBRD and the G7’s DFIs to establish the EBRD-G7 DFI-EDFI Ukraine Investment Platform, announced during the G7 meeting in Tokyo last month, with new participants now joining to bring the total number of participants to 18.
The financial needs of Ukraine during a period of reconstruction are vast and beyond the scope of any single institution. The private sector will play a crucial role in restoring the Ukrainian economy. As a result, careful coordination is needed between Ukraine’s partners to maximize the effectiveness and impact of their interventions.
Building on the G7 Leaders’ Statement on assistance to Ukraine and the G7 Leaders’ Statement on Ukraine (19 May 2023), the EBRD and participating DFIs have agreed on how they can work together to contribute to the reconstruction of Ukraine.
Through the Memorandum of Understanding, the signatories are pleased to collaborate to increase the scale, efficiency and quality of recovery efforts in Ukraine and countries in Ukraine’s neighbourhood that are negatively affected by the Russian war on Ukraine.
The EBRD-G7-DFI-EDFI Ukraine Investment Platform will aim to promote co-financing among participating institutions through strengthening cooperation and information exchange for the reconstruction assistance of Ukraine with a mainly private sector focus.
The EBRD is the largest institutional investor in Ukraine and therefore has a distinct and important role in the country. Given its skills, relationships and operational experience in the region, it will act as the Lead Institution for co-investments under the newly established Investment Platform.
Partners, in close consultation with respective governments, will promote measures to address the financing gap for reconstruction, especially by working with the private sector. Their aim will be to contribute to the recovery of the economy, industry and infrastructure and the reconstruction of people’s livelihoods in Ukraine as well as stability in the international community.
The 18 signatories to the Memorandum of Understanding are:
European Bank For Reconstruction And Development
British International Investment Plc
Cassa Depositi E Prestiti S.p.a.
DEG- Deutsche Investitions- Und Entwicklungsgesellschaft Mbh
Japan Bank For International Cooperation
Japan International Cooperation Agency
Proparco
United States International Development Finance Corporation
Belgian Investment Company For Developing Countries S.a.
Compañía Española De Financiación Del Desarrollo, Cofides, S.a., S.m.e.
Finnfund
Investment Fund For Developing Countries
Nederlandse Financierings-maatschappij Voor Ontwikkelingslanden N.v.
Norfund
Oesterreichische Entwicklungsbank AG
Sociedade Para O Financiamento Do Desenvolvimento, Instituicao Financeira De Credito, SA
Swiss Investment Fund For Emerging Markets AG
Swedfund International AB
According to Djalal Khimdjee, deputy CEO of Proparco:
“Ukraine needs significant support and assistance to prepare for the future, and the private sector has a key role to play in this post-conflict reconstruction. Today, the G7 DFIs and the EBRD marked a milestone with the extension of the EBRD-G7 DFI-EDFI Ukraine Investment Platform, which will promote co-financing and aims to strengthen cooperation between DFIs. Proparco is honored to be part of it and to contribute to Ukraine’s recovery in the future.”