Page 74 - UKRRptDec23

The EIB will allocate €450M to Ukraine for two recovery projects. The first two tranches from the European Investment Bank for €100M of the planned total of €450M may be approved by the end of 2023. The funds will be directed to two projects:
● Ukraine Recovery III FL (€250M, first tranche is €100M): aimed at financing critically important social and urban infrastructure damaged by Russian aggression.
● Ukraine Water Recovery FL (€200M, first tranche is €100M): aimed at financing investment in critical water infrastructure in areas directly affected by the war or where many IDPs live, including those suffering the consequences of the Kakhovka dam disaster.
Money from the EIB is allocated within the framework of cooperation with Ukraine, the principles of which are laid down in a memorandum that allocates about €840M in credit funds toward implementing priority Ukrainian infrastructure restoration projects.
The IBRD and the World Bank provide Ukraine with $1.25B to restore agriculture. Ukraine and the IBRD have signed a grant and loan agreement for $550M within the World Bank’s Emergency Project of Provision of Inclusive Support for the Restoration of Ukraine's Agriculture (ARISE) project, reports the Ministry of Finance. The financing consists of a $230M World Bank loan from the ADVANCE Ukraine Trust Fund, supported by the Japanese government, and a $320M grant from the URTF Trust Fund. The goal is to help agricultural producers obtain access to financing through cheap loans and grants. It is planned that $500M will go to the 5-7-9% program, and $50M will go to grants. The Ministry of Agrarian Policy signed a similar grant and loan agreement for $700M with the World Bank. These funds will also be provided under the ARISE program. The money will go to an affordable loan and grant program. Implementation of the projects is planned for 2023 and 2024.
The EBRD is increasing its capital by €4B for the third time to invest in Ukraine. The Board of Directors of the EBRD recommended to the Bank's managers to approve a capital increase of €4B to ensure investments in Ukraine, the bank reported. This is the first step to increase the EBRD’s share capital, which currently stands at €30B. It should be formally approved by the end of 2023. This will be the third capital increase in the EBRD’s history. The previous two took place in 1996 and 2010. The increase decision is expected to take effect at the end of 2024, and the first payments will arrive in 2025. The additional capital will enable the EBRD to continue investing in Ukraine during the war at the level of €1.5B per year and increase annual investment to €3B in the future. This volume will be twice as large as during the war and three times as large as the average before the war.
• Other Country Aid
Military support from partners continues, but there are risks. An additional €4B was added to Germany's 2024 budget for Ukrainian military aid, doubling the total amount to €8B. At the same time, the EU plans to spend up to €20B on military aid to Ukraine but has met with resistance from some EU countries, including Germany. They caution against allocating such large sums several
74 UKRAINE Country Report December 2023 www.intellinews.com