**EBRD Works to Restore Ukraine’s Energy System**
The European Bank for Reconstruction and Development (EBRD) is working hard to restore Ukraine’s energy system, which was severely damaged by Russian attacks. The bank has invested nearly a quarter of its $4.5 billion in the country into state-owned energy companies since 2022.
**A Challenging Winter Ahead**
This winter could be the worst yet for Ukraine’s energy system, with officials warning that it may be left without power for large parts of the day. The EBRD has already invested over $1 billion in key energy companies like Ukrenergo and Naftogaz.
**Urgent Action Needed**
Arvid Tuerkner, head of the EBRD’s efforts in Ukraine, says that urgent action is needed to restore the energy system. “We need to be very fast and focused to make sure (energy generation) is online as soon as possible,” he said.
**Investment in Energy Sector**
The bank has invested heavily in the energy sector this year, with a focus on private sector resilience. It has agreed to a 4-billion-euro capital increase to double its lending to Ukraine. So far this year, it has injected over 1.3 billion euros across various sectors.
**Supporting Private-Sector Growth**
Despite focusing on state-owned companies, the EBRD has also been one of the few investors to continue backing big-ticket investments in the private sector. The bank provided a $435 million loan for a merger between two major Ukrainian companies, showing that investment is still possible despite the war.
**Encouraging Local Banks to Lend**
The EBRD is encouraging local banks to lend through portfolio risk-sharing programs focusing on energy needs and small businesses impacted by the war. By the year’s end, the bank will have facilitated lending in the banking market of 1.1 billion euros.
**Combating Corruption**
Tuerkner also stressed that Ukraine must strengthen anti-corruption measures and combat harassment of businesses by tax authorities to create an attractive investment climate. The government has implemented reforms to address these issues.