Confirm cookie choices
Cookies are pieces of code used to track website usage and give audiences the best possible experience.
Use the buttons to confirm whether you agree with default cookie settings when using

RLF - Volynholding EUR 42 million loan Ukraine



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

19 Jul 2023



PSD disclosed:

01 Sep 2023

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Provision of up to EUR 42 million senior secured loan to LLC Volynholding, a subsidiary of Nestle S.A., for financing investments to develop a new production facility in Ukraine.

Project Objectives

The Project will support development of a new production site in the Western part of Ukraine to create a food production hub in the region.

Transition Impact

ETI score: 70

The Project is under the Resilience and Livelihoods Framework and follows the Transition Impact rationale of the framework, stemming from Resilient and Inclusive qualities.

Under the Resilient quality, the Project will support the development of a new production facility in the Western part of Ukraine, and keep economic activities in the local food production sector. As for the Inclusive quality, the Project aims to preserve the livelihoods of people directly affected by the war.

Client Information


Volynholding LLC is a limited liability company incorporated in Ukraine and a fully owned subsidiary of Nestle S.A. ("Nestle", or the "Group"). Nestle is a multinational food and beverages company, headquartered in Vevey (Switzerland).

EBRD Finance Summary

EUR 42,000,000.00

Total Project Cost

EUR 42,000,000.00


A result of the war on Ukraine, the market for liquidity and long-term financing in Ukraine is almost closed, with both local and international financial institutions tightening their risk appetite. The Project loan offers financing that is not available in the market from commercial sources on reasonable terms and conditions that are necessary to finance LLC Volynholding's investment plan.

Environmental and Social Summary

The proposed Project has been categorised B in accordance with the 2019 EBRD Environmental and Social (E&S) Policy. The new site will start operations upon completion, which is expected early next year (2024). Existing management systems will be extended to new manufacturing facility, including certification to ISO 9001, ISO 14001, ISO 45001, FSSC 22000, with the aim to have these systems in place by Q2 2024. Nestle has in place a broad range of approaches, policies and procedures covering the range of Performance Requirements (PRs) of the Bank covering topics including climate action, waste reduction, protecting nature, water stewardship, human rights, sustainable sourcing, taking care of people and communities and ethical and responsible business practices. Within each of these areas, the Group has set global and local targets and defined KPIs to measures progress, as well as all required internal and external reporting structures. Nestle has confirmed that its supply chain processes have been, and will be, applied in this facility including risk mapping of supply chains. Given the above, applied at the local, regional and global levels, it is judged that the Group has sufficient capacity and commitments in place to meet the Bank's PRs. No additional actions will therefore be required of the Group. The Group will be required to provide annual reporting on the key E&S topics relevant to the project, including the roll-out of the various approaches and management systems for the Volyn facility.

Technical Cooperation and Grant Financing


Company Contact Information

Oksana Baliasnikova
+38 098 485 11 11
Verkhniy Val Street 72-A, Kyiv 04070 Ukraine

PSD last updated

01 Sep 2023

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


GDPR Cookie Status