EBRD supports food and beverage security in Ukraine with €11 million loan to Karpaty Mineral Water

• EBRD lends €11 million to Karpaty Mineral Water
• Loan, backed by risk cover from the European Union’s Ukraine Investment Framework, will finance new energy-efficient beverage plant in Western Ukraine, doubling production capacity
• Plant will create new job opportunities, including for veterans

The European Bank for Reconstruction and Development (EBRD) is supporting the expansion of Karpaty Mineral Water Group (KMW), one of Ukraine’s leading beverage producers, with an €11 million loan. The Bank’s financing will enable the construction of KMW’s new greenfield beverage plant in the Lviv region of western Ukraine.

The new facility will nearly double KMW’s annual production capacity, enabling the company to meet rising demand for bottled mineral water across the country. This will help strengthen food and beverage security, particularly in communities affected by the ongoing war on Ukraine.

The new plant will be built in line with the highest energy-efficiency standards, advancing KMW’s sustainability goals. Its main production line, supplied by a German manufacturer, will be substantially more energy efficient than current equipment lines, improving the company’s environmental performance and avoiding nearly 2,477 tonnes of carbon dioxide emissions per year. The cost of the equipment will be partially covered by a Finance and Technology Transfer Centre for Climate Change (FINTECC) grant under the EU4Climate programme.

Beyond transitioning to a greener business model, KMW has also committed to broadening access to employment and support for those most affected by the war.

Under this investment, at least half of the 80 jobs that the project expects to create will be aimed at veterans and people with disabilities. KMW will also launch training programmes for veterans and assist in establishing a rehabilitation centre in partnership with local institutions, broadening access to job opportunities and psychological support.

The EBRD’s investment benefits from partial first-loss risk cover from the European Union under its Ukraine Investment Framework.

Karpaty Mineral Water Group is a leading producer of bottled beverages in Ukraine, specialising in mineral water, soft drinks and energy drinks. Founded in 2002, it has grown from a local player to become the country’s second-largest producer of mineral water, with a strong presence in central and western Ukraine.

The EBRD is Ukraine’s largest institutional lender, having deployed €8.5 billion in the real economy since Russia’s full-scale invasion in February 2022. The Bank has secured a €4 billion capital increase to continue supporting the country’s economy during wartime and in its future reconstruction efforts.