Ukraine is momentous investment destination for EBRD - a meeting of Prime Minister of Ukraine and First Vice-President of the Bank
Information and Communication Department of the Secretariat of the CMU, posted 14 June 2018 11:01

Ukraine is an important investment destination for the European Bank for Reconstruction and Development and a powerful platform for large projects implemented jointly with international partners. EBRD First Vice-President Jürgen Rigterink said during a meeting with Prime Minister of Ukraine Volodymyr Groysman. The meeting took place in the framework of the visit of Jürgen Rigterink to Kyiv.

"I have been holding the EBRD First Vice President office for only 9 weeks. And the fact that I am visiting Ukraine now shows the importance of your country in our portfolio of projects. For us, Ukraine is not only an investment destination, but also an important cooperation platform on a range of projects that we implement together with other international partners", said Jürgen Rigterink.

"Our relations have growth potential", said Volodymyr Groysman. "The Bank is one of the largest investors in Ukraine’s economy. And now we are talking about enhanced interaction and increased effectiveness."

The EBRD's First Vice President reminded that the Bank is currently working on a five-year action plan in Ukraine, which includes increase in funding and in-depth cooperation along specific directions, in particular on the work of national banks and the development of the energy sector.

"We have a big package of proposals, hence such meetings at the level of the Head of the Government when concrete projects can be discussed are of predominant importance", Jürgen Rigterink stressed.

The Head of Government briefed the First Vice President of the EBRD on the course of reforms and priorities for the current year. Among them are the preservation of the economic growth trend, which showed + 3.1% on the results of the first quarter, the launch of privatization processes, including privatization of small-scale assets through the ProZorro system, the continuation of deregulation, the implementation of infrastructure projects, and the development of innovations. Transformations that have already been implemented in the education, healthcare, pension, public administration, anti-corruption sectors are in the spotlight.

Apart from that, the Prime Minister placed a special emphasis on the issues pertaining to the energy sector, inter alia increasing domestic gas production as well as reforming Naftogaz of Ukraine, and he announced that the work of the National Commission, which conducts state regulation in the fields of energy and utilities has been restored. According to the Prime Minister, the Government is also interested in further cooperation with the EBRD on the modernization of the GTS, as well as in raising funds for increasing natural gas production and development of green energy.

"We are standing at the point when the economy will grow, and investment will increase. I see it and I am committed to this target. The situation stabilizes, thus this is a very good message. Even despite the fact that we are entering the electoral period, the Government is keen on moving forward", Volodymyr Groysman claimed.

Background

The total volume of EBRD investment in Ukraine amounted to 12, 2 billion euros within the framework of 400 projects. In the period from 2012 to 2015, the volume of annual investment in Ukraine amounted to 1 billion euros. In 2016, the EBRD's financial and lending support was reduced to 600 million euros. In 2017, a summary of the EBRD's investments in Ukraine was to the tune of 800 million euros. The Board of Directors approved two major projects concerning Ukraine, and in December 2017, the relevant agreements were signed, in particular granting a loan to JSC Ukrzaliznytsya to retrofit the rolling stock of Ukrzaliznytsia as well as a disbursal of assistance for the extension of the subway network in Kharkiv. In March 2018, the EBRD allocated funds for the construction of three solar power plants in Vinnytsya region.