EBRD and the Netherlands support food security in Ukraine
The European Bank for Reconstruction and Development (EBRD) is joining forces with the government of the Netherlands to back Ukraine’s agribusiness sector and safeguard global food security.
The Netherlands and the EBRD join efforts to support Ukraine’s agribusiness sector
€25 million in guarantees from the Netherlands to help provide emergency liquidity
Funds to help safeguard food security
The Netherlands, an EBRD founding member and an important donor to the Bank’s efforts in Ukraine, is providing a €25 million funded guarantee to support private companies operating in critical agri-related industries, whether it be farming or food processing, transport or imports. Last year it provided a €70 million grant supporting an EBRD loan to Ukrenergo, Ukraine’s electricity transmission company, for urgent repairs to the infrastructure that was heavily bombed during Russia’s war on the country.
Ukraine is a major agricultural economy that supplies farming produce around the world. Boosting food security during the war – both locally and internationally – is a key element of the Bank’s support plan for Ukraine’s real economy.
The contribution will be dedicated to food security and will help to leverage further EBRD financing in Ukraine.
The guarantee agreement was signed today in London by the Deputy Director of Foreign Financial Relations, Dutch Ministry of Finance, Robin Uyterlinde, and EBRD Managing Director, Impact and Partnerships, Ines Rocha.
“It is important to support Ukraine’s economic resilience in this unjustified war. By supporting Ukraine’s agribusiness sector we also enhance food security around the world, including in many developing countries,” explained Robin Uyterlinde.
“The war on Ukraine puts at risk food security globally, because Ukraine is a significant food producer and exporter. The financing will back Ukraine’s agri-related private companies, helping overcome the looming global food crisis,” said Ines Rocha.
To address the Ukrainian economy’s current challenges, the EBRD is prioritising trade finance, energy security, vital infrastructure and food security, and providing liquidity to pharmaceutical companies. Investments in all areas will involve risk sharing with partners such as the United Kingdom.
The EBRD was swift to condemn the Russian invasion of Ukraine that began on 24 February 2022 and the Bank has pledged to stand by Ukraine. In early April 2022 the EBRD Board of Governors voted to suspend indefinitely Belarus and Russia’s access to EBRD finance and expertise, and the Bank has closed its offices in both of those countries.
Donor funding is a critical element of EBRD support for Ukraine and other countries affected by the war. Besides the Netherlands, donors that have committed to contribute so far are: Austria, Canada, Denmark, the European Union, Finland, France, Ireland, Italy, Japan, Norway, South Korea, Spain, Sweden, Switzerland, Taipei China, the United Kingdom and the United States of America.