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EBRD steps up support for Ukraine’s shipping industry
The European Bank for Reconstruction and Development provided a $20 million
loan to support further expansion by Odessa-based shipping company, Black Sea
Shipping Management Co Ltd. (BSSM). $10 million out of this loan was
syndicated to Bank of Scotland.
The project envisages post-delivery financing of five new dry cargo vessels of
5,500 deadweight each. The vessels will be commissioned at Kherson shipyard in
south Ukraine.
Riccardo Puliti, the EBRD Transport Team Director, said this transaction is
consistent with the EBRD strategy for Ukraine to provide further support for
the shipping industry, a key area in the domestic transport sector. By signing
this project the Bank has consolidated its position of a leading lender to the
shipping industry in the country, he added.
There is growing demand for sea-river vessels due to the growth in export of
freight such as grain, timber fertilisers, scrap and steel products from the
Azov and the Black Sea region. The implementation of this project will help
BSSM to maintain its ability to offer safe and reliable shipping services in
the region as well as to establish the relevant shipping standards.
As of today the EBRD has committed over €400 million to transport sector
projects in Ukraine.
The EBRD is the single largest financial investor in Ukraine, having committed
to date a total of €2.4 billion across all sectors of the country.
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