Ukraine overview

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Cityscape in Ukraine

In September 2018 the EBRD Board of Directors approved a new strategy for Ukraine which sets out the Bank’s priorities in the country for the next five years.

The EBRD will pay special attention to projects that will integrate investment and policy engagement in areas such as privatisation, energy security and efficiency, the financial sector, trade and infrastructure.

The EBRD’s operational and strategic priorities in Ukraine will rest on the following five pillars:

  • Promoting privatisation and commercialisation in the public sector to increase competitiveness and good governance: The EBRD will help stimulate private sector participation across sectors and further commercialisation of public sector firms. The Bank will continue to support the implementation of modern public sector procurement as well as the introduction of proper public governance.
  • Promoting the rule of law, fair competition in the private sector and support of companies that use best practice: The EBRD will foster competition and support anti-corruption efforts. Special attention will be paid to improved skills and to the employability of disadvantaged groups.
  • Strengthening energy security through effective regulation, market liberalisation, diversified and increased production and energy efficiency:  The EBRD will pledge more resources to create a market structure for sustainable energy and improved energy connectivity. The Bank will assist in the creation of increased resource efficiency and will help promote renewable energy.
  • Enhancing the resilience of the financial system by strengthening Ukraine’s banking sector, and by developing capital markets and non-bank finance: The EBRD will promote a stable and efficient banking sector, a greater variety of non-banking financial channels and the use thereof.
  • Improving integration by facilitating trade and investment, expanding infrastructure links, and supporting convergence with EU standards: The Bank will invest in improvements to connectivity through better infrastructure. It will also help facilitate increased trade and investment flows.

As well as being a country where the EBRD works, Ukraine is also a donor and a beneficiary of the Eastern Europe Energy Efficiency and Environment Partnership Fund (E5P) with total contributions of €10 million.

The EBRD’s latest Ukraine strategy was adopted on 3 October 2018

Ukraine's policy response to the coronavirus crisis

The EBRD is monitoring Ukraine's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.

Learn more

Current GDP forecast for Ukraine’s Real GDP growth in 2020 -5.5%

Current GDP forecast for Ukraine’s Real GDP growth in 2021 3.0%

A Covid-19-induced recession in Ukraine in 2020 has come on top of major structural weaknesses in the economy. GDP declined by 1.3 per cent year-on-year in the first quarter of 2020, with most sectors in negative territory and a sharp fall in investments. Trade and information and communication services were the rare bright spots, and private consumption remained strong. However, since March 2020, the pandemic has been taking a full toll on the economy through a combination of reduced foreign demand and drop in domestic demand due to the lockdown.
These developments have further damaged the already contracting manufacturing sector and reversed the fortunes of most services sectors. The economy shrank by 11.4 per cent year-on-year in the second quarter of 2020. Despite the challenging environment, a credible monetary policy has preserved macroeconomic stability, and the new IMF
programme agreed in the midst of the pandemic has further stabilised expectations and mobilised substantial financing from the official sector and private investors. High-frequency indicators suggest that economic activity reached the floor in April, and has been gradually recovering. GDP is forecast to contract by 5.5 per cent in 2020, followed by a recovery of 3.0 per cent in 2021. Risks to the downside remain considerable, reflecting uncertainty about future social distancing as well as policy and structural reform commitments during an extremely challenging time.

Ukraine in the EBRD’s 2020-21 Transition Report

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