The European Bank for Reconstruction and Development (EBRD) has greenlit a capital increase of EUR 4 billion ($4.4 billion), paving the way to double its investments in Ukraine, Reuters reported on Dec. 19.

The fresh capital injection is set to fuel major investments in the real sector of the Ukrainian economy, both during wartime and the recovery period, according to the EBRD.

This marks the third capital increase in the bank’s history, propelling it to a total of EUR 34 billion ($37.3 billion).

The augmented capital will allow the EBRD to sustain its annual investments in Ukraine at around EUR 1.5 billion ($1.6 billion) during the war, with plans to increase the support to EUR 3 billion ($3.3 billion) annually once the country’s recovery gains momentum.

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The EBRD has been the largest institutional investor in Ukraine for the past 30 years. After Russia’s full-scale invasion in 2022, its support increased significantly. The EBRD allocated EUR 3 billion ($3.3 billion) to Ukraine in 2022-2023.

The EBRD has already provided Ukraine with financial support worth $1.2 billion this year. In total, the bank has promised to allocate at least $3 billion to help Ukraine.

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