Supporting Ukraine: Proparco's enhanced strategic response

Stéphane Froissardey : Since the start of the conflict in 2022, Proparco has liaised closely with its Ukrainian partners in order to understand their situation, assess their needs and devise a strategy tailored to the priorities identified.Four focuses have been selected. Supporting investment funds with bankable projects that have a major impact on the population and provide the capital essential for reconstruction. It is also vital to develop renewable energies, given that at least 60% of the country's energy capacity has been destroyed. The aim is to rebuild more resilient renewable and decentralised power plants. 

Moreover, it is essential to support Ukrainian banks by sharing risks and stimulating lending to SMEs. Lastly, it is also important to finance the agribusiness sector which is vital for food security. This sector needs resources to boost its production and working capital, despite the logistical constraints imposed by the conflict.
 

Proparco has put together a solid pipeline of projects covering these four priority focuses, for a total amount of approximately €200 million. This diversified portfolio reflects the demand identified among investment funds, local banks and stakeholders in the Ukrainian energy and agribusiness sector. If 50% of these projects come to fruition, Proparco would triple its exposure in Ukraine when compared to its position at the beginning of the war. 

In concrete terms, two operations have already been signed: a guarantee, in partnership with the EBRD, for international trade finance operations conducted by a Ukrainian bank, and a new €40 million stake acquired in an investment fund. The guarantees, which can be mobilised with the European Commission, will be vital in achieving these ambitious objectives and securing financing in what remains a very risky environment.

At the Ukraine Recovery Conference organised in Rome, Proparco has officially announced its participation in a major initiative headed up by France, Germany, Italy and Poland, with vital support from the European Commission and the European Investment Bank (EIB). This project is designed to inject capital into the Ukrainian economy by supporting SMEs, infrastructure projects and businesses wishing to forge strong ties with European players. 

The aim is to bolster the Ukrainian entrepreneurial ecosystem and anchor it in a robust partnership with the EU. Proparco is working along with the other French teams involved in the project, notably the French Treasury and the President of France's Task Force on Ukraine.