EBRD expects to keep Ukraine funding near record levels this year

The European Bank for Reconstruction and Development will keep ​lending to Ukraine near record levels for ​a second year in 2026, amid ‌an ​escalating campaign of Russian air strikes, as it provides funds to bolster and protect the energy sector. EBRD President Odile Renaud-Basso said the multilateral bank expected ‌to provide €2.7 billion of funding this year, only slightly down from record levels in 2025 of €2.9 billion.

Despite an escalation in Russian strikes against energy and transport infrastructure, warehouses and factories, Renaud-Basso said that demand for financing ‌from the private sector remained strong for both investment and working capital. More than 80% of its ‌lending this year in Ukraine will be to the private sector, she said. Renaud-Basso said she had a good meeting in Kyiv with Ukrainian President Volodymyr Zelenskiy.

"He asked for help on energy sector protection of the infrastructure, preparation for the winter," ⁠she ​said. The EBRD is already ⁠funding investments by Ukraine's national grid operator Ukrenergo to place key infrastructure such as transformers inside protective concrete shelters.

"It’s working quite ⁠well. We just met the CEO and he was explaining that some of them have been attacked 30 times ​and the structure has resisted," she said. The bank also has an ongoing program to finance ⁠1.4 gigawatts of renewable energy in Ukraine.

During her visit to Kyiv, Renaud-Basso signed a deal for €130 million of emergency funding for ⁠Ukrainian ​Railways to support passenger and freight services and its financial resilience in the face of continual Russian attacks. The EBRD also inked a loan for €150 million to fund new metro cars for Kyiv.

The bank ⁠has trimmed its growth forecast for Ukraine this year to 1.5%, from 2.2%, and Renaud-Basso said there ⁠could be downside risks ⁠to the forecast if Russia's air strikes continue to hit economic targets. "The new environment that the country is facing since August is ... creating clearly more uncertainty, ‌and probably some investment ‌decisions will be postponed," she said.