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EBRD President attends environmental forum in Kiev
Ukraine's largest shipping company receives new loan
EBRD President Jean Lemierre arrives in Kiev on Wednesday to participate in the 5th Pan-European Ministerial Conference "Environment for Europe." During the two-day trip he will also meet senior government officials and private-sector clients, as well as sign a $30.9 million loan to a longstanding EBRD client, ship operator Ukrrichflot.
Mr Lemierre's participation in the forum complements the EBRD's environmental mandate, under which the Bank employs many tools and approaches to protecting the environment, most notably by financing environmental infrastructure - such as water and waste-water systems and district heating - and by investing in energy-efficiency projects. During the forum, Mr Lemierre will emphasise the Bank's belief that improving the environment requires a partnership between the public and private sectors, governments, citizens, donors and international institutions.
In Ukraine the environmental emphasis is on energy efficiency, nuclear safety and improvement of environmental standards in accordance with best international practice. The EBRD administers three funds to decommission or make safe soviet-era nuclear plants, including one fund set up specifically to rebuild the shelter over the destroyed Chernobyl nuclear power reactor.
Separately, Mr Lemierre will also meet with President Leonid Kuchma, Prime Minister Victor Yanukovich, Parliament Speaker Volodymyr Lytvyn and National Bank Governor Sergey Tigipko to discuss implementation of projects listed in the recently signed Cooperation Programme between Ukraine and the EBRD. Accompanied by Yuri Poluneev, EBRD Board Director for Ukraine, Mr Lemierre will emphasise the Bank's commitment to Ukraine and the importance of urgent improvements in the country's investment climate to attract both foreign and domestic investment.
The Ukrrichflot loan will represent the EBRD's third transaction with Ukraine's largest ship operator. An important aspect of the deal is that $10 million has been syndicated to the Bank of Scotland, indicating interest among western commercial financiers in Ukraine.
The funds will be used to acquire new dry cargo vessels as part of the company's fleet renewal programme - a key aspect of the company's long-term strategy, Mr Lemierre said. Ukrrichflot is one of the EBRD's longest-standing clients in Ukraine, having worked with the Bank since 1995.
The EBRD's cumulative investments in Ukraine stand at €1.3 billion through 59 projects.
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