Marshall Plan for Ukraine? – “It is much too early for German companies”

WORLD: What financing can your bank currently do in Ukraine?

Odile Renaud-Basso: We will invest more than one billion euros in Ukraine in 2022. We bear half the risk ourselves and the other half is borne by generous donors through guarantees. The money goes primarily to liquidity support for essential infrastructure.

WORLD: Which companies benefit?

Renaud-Basso: We finance companies in the energy sector, also in the transport sector such as rail transport. If there is no electricity and no railroad then the ability to win the war will be completely undermined! It is also important to secure the supply of food, as well as the banking sector and pharmaceutical companies. We recently started providing financial support to municipalities because the number of refugees is so large and their care needs to be organized. This also relieves the burden on public budgets, so that state employees continue to receive their money. The more resilient and active the economy, the more tax revenue there is.

WORLD: The EBRD recently had to intervene to save the state energy supplier Naftogaz from collapsing. Is that the job of the bank?

Renaud-Basso: It is indeed unusual for the bank to support a state-owned company. We normally invest mostly in private companies. But in this case we decided to do so, especially since Naftogaz plays such a central role in Ukraine's energy security. In June, the EBRD granted Naftogaz a EUR 300 million loan for the purchase of gas. With winter approaching, this is extremely important.

WORLD: Chancellor Olaf Scholz promises an “international Marshall Plan” for Ukraine. The conference on Tuesday in Berlin should be the beginning. Can German companies prepare for large orders?

Renaud-Basso: It's still far too early for German companies to think about new investments in Ukraine. We're talking about financing at the moment to keep the country running. Not to forget: The destroyed regions are still being fought or are occupied by the Russians. Foreign investments for the reconstruction of Ukraine will come, but it will take time.

WORLD: Is the EBRD still involved in Russia?

Renaud-Basso: The EBRD already ended its engagement in Russia in 2014 after the annexation of Crimea. After the invasion, our governors decided that, along with Russia, Belarus would also be barred from accessing the Bank's funds.

WORLD: Most EBRD investments are currently going to Turkey. Is that correct given the pressure President Erdogan is putting on the central bank?

Renaud-Basso: In Turkey we mainly work with the private sector. And we are very selective in our exposure choices, doing a lot of stress testing. Turkey has a large, resilient private sector. But of course we need to constantly review the situation to take the impact of high inflation into account when making investment decisions.