Switzerland to pay 6.4 mln euros on behalf of Ukraine for subscription to EBRD additional shares

MOSCOW. May 15 (Interfax) - Ukraine and Switzerland have signed a memorandum of understanding under which Switzerland will pay a contribution of 6.4 million euros on behalf of Kiev for Ukraine's subscription to additional shares as part of the European Bank for Reconstruction and Development (EBRD) capital increase.

The memorandum was signed by Ukrainian Finance Minister Sergei Marchenko and Swiss Ambassador and Delegate of the Federal Council for Trade Agreements at the State Secretariat for Economic Affairs Dominique Paravicini on the sidelines of the EBRD's 34th Annual Meeting and Business Forum in London on Wednesday, Ukrainian media said, citing the Finance Ministry.

The subscription to additional shares will help keep Ukraine's stake in the EBRD's capital structure unchanged, allowing Ukraine to maintain its influence on the bank's decision making process with regard to financing Ukraine's needs, the ministry said.

The EBRD Board of Governors approved a capital increase of 4 billion euros, or by 13%, to 34 billion euros in late 2023. Ukraine needs to pay 32.27 million euros to maintain the current size of its stake. Under the signed memorandum, Switzerland will pay the first 6.4-million-euro contribution on behalf of Ukraine. The funds will be provided on a non-repayable basis.

As it decided in late 2023 to enlarge its capital, the EBRD said that this move would allow it to continue to invest approximately 1.5 billion euros in Ukraine per year during the crisis and have the funds to bring support to 3 billion euros a year after Ukraine's reconstruction starts. Such investments are fully supported by the EBRD budget.

According to data from the Kiel Institute for the World Economy, Switzerland has provided 935 million euros in aid to Ukraine since February 2022, including humanitarian aid worth 720 million euros, and 215 million euros in financial assistance, including 30 million euros in direct budget grants, the ministry said.

Marchenko also thanked the Swiss side for plans to allocate CHF 1.5 billion, or around $1.7 billion, in humanitarian aid and support for Ukraine's economic development and long-term recovery under Switzerland's 2025-2028 international cooperation strategy.

The EBRD has invested nearly 220 billion euros in more than 7,400 projects since it was established in 1991. According to its information, the bank has approved projects for Ukraine worth 7 billion euros since the start of the crisis.

The EBRD today has 72 national shareholders in addition to the European Union and the European Investment Bank.