Page 58 - bne monthly magazine October 2022

58 I Eastern Europe bne October 2022
INTERVIEW:
"We are focused on supporting Ukrainian businesses and government needs"
– Dimitar Bogov, EBRD
Dominic Culverwell in Kyiv
Russia’s invasion of Ukraine has devastated the country, caus- ing billions of dollars' worth of damage to infrastructure, houses and industry. Kyiv and its international allies have discussed a “Marshall Plan” for Ukraine at several key events this year, including the reconstruction con- ference in Lugano, Switzerland in July, whilst another conference is planned in Berlin for October.
Ukraine needs assistance from its West- ern allies, and one of its key partners is the European Bank for Reconstruction and Development (EBRD), which is on the way to providing at least €1bn to keep Ukraine’s businesses and opera- tions afloat. In an exclusive interview with bne IntelliNews, Dimitar Bogov,
the EBRD Regional Lead Economist for Eastern Europe and the Caucasus, explains how the bank is providing critical support for Ukraine.
Although primarily involved in the private sector, EBRD adjusted its priorities once the war began and focused on Ukraine’s most urgent needs, which Bogov narrowed down to food security, medical supplies, energy security, logistics and trade finance facilities. At the same time, the bank stood by its clients to ensure they had full support during the war.
“We are focused on how we can sup- port Ukrainian businesses and also the government needs to keep them functioning in the current situation,” Bogov said.
He points to UkrZaliznytsya (UZ), Ukraine’s state-owned railway, as an example. Pre-war, EBRD lent money to help with modernisation, but once the
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war began, lending was repurposed to provide €50mn in liquidity to keep UZ’s operations running, which Bogov knew was critical to the country. With Russia blocking Ukraine’s Black Sea ports until July 22, UZ took the brunt of exporting goods, particularly agricultural prod- ucts. Even in August, after the signing of the Black Sea Initiative which opened up three ports, 3mn tonnes of goods were exported via rail, more than by sea or road. As Bogov explains, the railways became “the only lifeline” for Ukraine.
The Black Sea blockade helped esca- late global food prices and devastated Ukraine’s agricultural industry, one
of the pillars of its economy. EBRD extended several trade lines with food and agricultural companies to help with the sowing and harvest season, which in turn not only contributes to food security in the country but the whole world, due to Ukraine being the globe’s second-largest exporter of grain.
In addition, EBRD supported Ukraine’s energy sector. The bank extended credit lines to Ukrenergo, Ukraine’s national energy company, which helped the company continue operations and even begin exporting electricity to the EU, Bogov said. The bank also provided Naftogaz with up to €300mn due to fears
“We are focused on how we can support Ukrainian businesses and also the government needs to keep them functioning in the current situation”
EBRD London Headquarters / bne IntelliNews