On 13 March, the European Bank of Reconstruction and Development (EBRD) announced that it had expanded its cooperation with Privatbank, Ukraine’s largest systemically important bank, by making available a US$25 million trade finance limit. This will support the Ukrainian player’s growing trade finance business.
Since Russia began its full-scale war on Ukraine in 2022, access to financing for Ukrainian importers and exporters has been severely constrained, with international banks shying away from taking direct risk on Ukrainian trade finance transactions, the EBRD said in a press release.
Privatbank will also join the EBRD’s own Trade Facilitation Programme (TFP), a key part of EBRD efforts to support the restoration of global and regional food and energy supply chains. The TFP has supported 355 trade transactions worth €972 million for the most crucial goods for the Ukrainian economy since February 2022. Trade and food security are two of the EBRD’s five investment priorities in Ukraine, along with energy security and support for vital infrastructure and the private sector, says the EBRD.
“By providing this trade finance limit for Privatbank, the EBRD is playing an important role in facilitating continued trade activities in Ukraine. This is critical not only for keeping the flow of essential goods moving but also for generating revenue for the country. A functioning trade sector will help Ukraine rebuild its war-torn economy, create jobs, and ultimately strengthen its overall resilience,” the EBRD said in a press release.
