The European Bank for Reconstruction and Development (EBRD) increased its investment in projects in Ukraine by 7.1 percent in 2011 compared to 2010, to 1.02 billion euro, the Kyiv office of the bank has reported.
In 2011, the EBRD made the second largest contribution since the start of its operations in Ukraine in 1993. The bank signed 41 new deals worth 1.02 billion euro [$1.3 billion], reads the release.
As reported, the EBRD in 2010 reduced investment in Ukraine compared to 2009 by over 13 percent: 592 million euro was contributed in 28 projects.
Earlier the EBRD leadership declared that the bank is ready to invest around 1 billion euro every year in Ukraine until 2014 inclusively. In late 2011, Andre Kuusvek, the Ukraine Country Director of EBRD, said that the number of projects with the participation of foreign investors and the EBRD could decrease in Ukraine in 2012 due to the fall of interest to the country.
According to the press release, in 2011 the bank focused on the private sector, where 35 companies and five financial institutions obtained aid in the form of financing from the EBRD.
In addition, in 2011, the EBRD contributed 16 investments in share capital of financial institutions and companies, which is a historic year record for the bank in Ukraine.
The only deal signed in the state sector in 2011 was the largest project in the renewable energy area – a 200 million euro loan to Ukrhydroenergo to upgrade hydroelectric power plants on the Dnipro River.
The EBRD also said that the financing of the agricultural sector in 2011 under 12 deals reached almost 190 million euro , while in the natural resources area five projects totally worth 105 million euro were signed.
In addition, 190 million euro was allocated to the banking sector in Ukraine via various investments, deals with long-term debt liabilities and trade guarantees.
The EBRD proposed amendments to the Budget Code of Ukraine, which were approved. This allows the bank to resume municipal crediting in Ukraine, reads the release.
The EBRD remains the largest financial investor in Ukraine. The bank has provided for over 7.5 billion euro ($9.6 billion) under 294 projects.