EBRD to help Ukraine find an exit for its exports

By Ahmed Eljechtimi

MARRAKECH, Morocco (Reuters) – The European Financial institution for Reconstruction and Improvement (EBRD) is contemplating monetary assist for Ukraine’s transport and logistics firms to assist them keep their exports, a senior financial institution official stated on Thursday.

Ukraine final week formally closed its 4 Black Sea and Azov Sea ports, which Russian forces have captured, leaving land routes by way of neighbouring international locations as its solely export choice.

It consequently dangers shedding thousands and thousands of tonnes of grain exports on account of Russia’s management of Black Sea delivery, triggering a meals disaster and inflationary strain on world meals commodities markets.

The EBRD plans to supply a liquidity line to Ukraine’s rail firm UZ to maintain it working and put together it to export extra Ukrainian items, EBRD’s japanese Europe head Matteo Patrone informed Reuters on the financial institution’s annual conferences in Marrakech.

“We’re working with logistics firms to see find out how to assist them on liquidity strains,” he stated.

The initiative consists of Ukraine’s submit workplace and different firms within the non-public and public sectors, in addition to municipalities, he added.

Talks between EBRD and Ukraine’s infrastructure ministry are methods to improve transborder and transhipment infrastructure, Patrone stated.

A dealer stated rail might solely export a fraction of the grain at present saved in Ukraine’s silos, with the rail firm needing to adapt its infrastructure and gear for transborder grain shipments.

The Financial institution can also be within the early phases of negotiating liquidity strains to assist Ukraine’s neighbouring international locations cope with Russia’s fuel provide halt, Patrone stated, with out giving particulars.

“We’re additionally discussing with Naftogas the supply of a liquidity line to them,” Patrone stated.

The EBRD has stated it intends to spend 1 billion euros ($1.04 billion) in 2022 to assist the Ukrainian economic system.

European Union Commissioner for Commerce Valdis Dombrovskis estimated the price of struggle harm to Ukraine at between 500 billion and 600 billion euros.

($1 = 0.9637 euros)

(Reporting by Ahmed Eljechtimi; Enhancing by Richard Chang)