Projects in Ukraine

Project Summary Documents

Project Summary Documents (PSDs) are disclosed for each project prior to Board consideration. They contain project descriptions, financial details, client information, environmental issues, tender guidelines, and contact details. PSDs for private sector projects are disclosed at least 30 days prior to Board consideration and for state sector projects, at least 60 days.

Project Summary Documents

Signed projects

Board approval is the final stage in the project approval process. After Board approval, the EBRD and the client sign the deal and it becomes legally binding. Signed project lists reflect year-end data.

Signed projects  (0.1Mb) 

Case studies

Mittal Steel Kriviy Rih

In April 2006 the EBRD provided Ukraine's largest steel company, Mittal Steel Kriviy Rih, with a $200 million to help upgrade technology, boost productivity and become more energy efficient. By participating in this project, the Bank demonstrated its support for the first large scale transparent and successful privatisation in the country and the introduction of international business management practices in Ukrainian companies. The loan will also help strengthen the local economy, increase steel production, improve competitiveness and standards within the country’s steel sector, and significantly boost energy savings. The latter is especially important given that Ukraine remains one of the most energy-intensive countries in the industrialised world and its steel sector needs significant investment to comply with modern requirements of energy efficiency. It will also reduce the use of natural gas at the Kriviy Rih facility, thus contributing to the energy diversification strategy of Ukraine.

Uksnab

The EBRD’s largest, up to 35 per cent, equity investment in Ukraine to date. The Bank acquired shares in CJSC Uksnab for €12.4 million in two phases. Uksnab, a part of the Ukrainian Beer Company (UBC) Group, is the largest producer of commercial refrigeration equipment in the CIS. The project will help finance the expansion of Uksnab’s manufacturing facilities to a wider range of commercial refrigeration equipment to take an advantage of the rapid growth of the hotels, restaurant and catering (HoReCa) sector in Ukraine and other Commonwealth of Independent States (CIS) countries. The investment plan envisages, in particular, the creation of manufacturing facilities for upright display coolers and further expansion of Uksnab’s production capacity.

M06 Ukrainian motorway completion

The EBRD is provided a €200 million sovereign loan to Ukraine with the proceeds to be on-lent to Ukravtodor, the Ukrainian road administration. The project will finance the rehabilitation of the final 427 kilometre stretch of the M06 motorway connecting Ukraine’s capital Kiev with European Union countries such as Hungary, Slovakia and Poland. This section of the motorway is the final link to provide a high standard through route from Kiev to the western border of the country. The transaction builds on the two previous successful projects for a total amount of EBRD funding of €175 million signed in 2000 and 2005, respectively, for the rehabilitation of the first and second phases of the M06 motorway. Technical cooperation funds for the project, provided by the EU, will finance consultancy assistance for the development of concession legislation and a public private partnership (PPP) strategy. This project element will be crucial for the Bank’s continued support of the transport sector reform in Ukraine.

Farmak

A €32 million loan to JSC Farmak, one of the largest pharmaceutical companies in Ukraine. The loan proceeds will be used to modernise the company’s existing operations and to build new manufacturing facilities. The loan will enable Farmak to launch production of new pharmaceutical products, including vaccines and cardio-generics, that conform with the European Union’s Good Manufacturing Practice (GMP) industry standards. A portion of the loan is being syndicated to two commercial banks: ING Bank N.V. Dublin Branch and Raiffeisen Zentralbank Österreich AG, which are providing € 10 million under the EBRD’s A/B loan structure. The project will facilitate further growth and expansion of Farmak. It will help increase competition in the Ukrainian pharmaceutical sector by strengthening the role of a local, low cost manufacturer in the production of new higher quality products, many of which are currently imported. This is especially important given that less than a third of about 500 pharmaceutical producers operating in the Ukrainian market are domestic manufacturers with a market share of less than 30 per cent. 

Chumak

Chumak is a leading Ukrainian food processor founded by two Swedish entrepreneurs in 1996. Today it is one of the most recognised consumer brands in Ukraine, with a leading market position in each of its product segments: ketchup and sauces, edible oil and mayonnaise. 

In July 2004 the company received a $10 million long-term loan from the EBRD.  Loan proceeds are being used for the installation of oil extraction equipment at its crushing plant. A further $5 million of short-term finance is expected to be extended for the purchase of sunflower seeds at harvest.

Because of the nature of its products, most raw materials are purchased by Chumak locally from farmers or traders in the area. Current expansion of Chumak’s operations will guarantee purchases of agricultural produce and timely payments much needed by local farmers. 

Small, medium and micro (SME/MSE) business support project

Many projects are too small to be funded directly by the EBRD. To give entrepreneurs and small firms greater access to finance, the EBRD supports financial intermediaries, such as local commercial banks and micro-business banks. In Ukraine, the EBRD has invested $200 million in a framework facility for on-lending to local banks. These, in turn, will provide financing to micro, small and medium enterprises.

The SME/MSE support project is implemented directly through credit lines to local commercial banks without sovereign guarantee and without involving the National Bank. The project’s first two credit lines, worth $10 million each, were opened to Aggio Bank and Forum Bank. Other participating banks will be announced as additional credit lines are opened.

The two previous credit lines for small and medium business - SME I and SME II - were implemented through the National Bank of Ukraine.