EBRD Receives Recognition for Supporting Ukraine's Agricultural Industry

The Trade Facilitation Programme (TFP) of the EBRD has been honored with the Best Deal of 2022 Award by Global Trade Review. This recognition was given for a transaction that facilitated the import of agricultural machinery in Ukraine. The EBRD's initiative is aligned with its commitment to assist Ukraine, which is a significant food producer, in maintaining its crucial exports and addressing global food security concerns, especially during times of war.

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In May 2022, the European Bank for Reconstruction and Development (EBRD) extended a guarantee of €4 million in favor of LLC Technotorg, a prominent distributor of agricultural machinery in Ukraine, to facilitate the import of goods into the country.

The guarantee was provided to ING Bank, the confirming bank, to support Ukrgasbank, the issuing bank, and it covered the entire political and commercial payment risks of the issuing bank. This transaction was part of the EBRD Shareholder Special Fund's portfolio and was completed despite significant political and economic obstacles to trade.

The deal had several advantages such as meeting the high demand for supplies of Ukrainian farmers during Russia's invasion of Ukraine, ensuring that farmers had the necessary equipment to cultivate and harvest crops, eliminating obstacles that prevented Ukraine from providing essential goods to countries with food security concerns, ensuring the uninterrupted flow of critical imports into Ukraine, and indirectly supporting the economy by sustaining capital inflows during the ongoing war.

The agricultural sector of Ukraine, which makes up 11% of the country's gross domestic product (GDP), employs almost 20% of its labor force and contributes to nearly 40% of its total exports, has been adversely affected by the ongoing conflict in the region. As a result, Ukraine has faced challenges in harvesting and exporting its agricultural produce to global trading partners.

To address this issue, the European Bank for Reconstruction and Development (EBRD) has increased its financing support for Ukraine under the Trade Facilitation Programme (TFP) by 40%, amounting to €316 million as of April 2022.

- EBRD Press Release

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