**European Bank to Boost Ukrainian Economy with $1.05 Billion in New Loans**
The European Bank for Reconstruction and Development (EBRD) has announced a major initiative to support Ukraine’s economy, enabling banks to provide up to 900 million euros ($1.05 billion) in new loans to companies in key sectors. This move is expected to have a significant impact on the country’s recovery from the ongoing war with Russia.
**Funding for Key Sectors**
The EBRD will share credit risks with Ukrainian banks, allowing them to provide more funding to companies in several critical areas, including agribusiness, manufacturing, pharmaceuticals, transport and logistics, as well as energy security projects. This is particularly important given the devastating impact of Russian attacks on Ukraine’s energy infrastructure, which has disrupted nearly two-thirds of the country’s total electricity generation.
**Focus on Renewable Energy**
In response to these challenges, the EBRD will focus on supporting distributed generation and renewable energy projects, including solar and wind power. This is in line with plans by the European Union (EU) and other donors to de-risk renewable energy investments and attract more private capital to the sector.
**Significant Investment in Energy Sector**
The EBRD has already invested a significant amount in Ukraine’s energy sector since the war began, with nearly one-third of its wartime financing – 2.4 billion euros ($2.8 billion) – going towards supporting state-owned electricity transmission and gas companies, as well as financing for hydropower and small-scale distributed generation.
**Support for Natural Graphite Development**
In addition to these initiatives, the EBRD has expressed interest in supporting the development of a natural graphite deposit in Ukraine following the U.S.-Ukraine minerals agreement. Graphite is a strategic material used in batteries and defense applications, and this investment could have significant long-term benefits for the country’s economy.
**Digitizing Geological Data**
The bank will also launch the second phase of digitizing Ukraine’s paper-based geological data archive to make information about mineral deposits more accessible. This could help to stimulate further investment in the sector and support the country’s economic growth.
Overall, this initiative by the EBRD represents a significant boost for Ukraine’s economy, with the potential to unlock new funding opportunities and drive growth in key sectors. As the bank continues to invest in the country’s recovery, it is clear that there are many exciting developments on the horizon.
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