The European Bank for Reconstruction and Development (EBRD) has launched a new support mechanism with PrivatBank and Raiffeisen Bank Ukraine (RBU) aimed at helping Ukrainian businesses and households affected by Russia’s war.
The new Enterprise Security Enhancement (ESE) feature will allow eligible borrowers to receive partial debt relief if assets financed through EBRD-backed loans are damaged or destroyed as a result of the war. The EBRD will compensate partner banks for part of the resulting losses using donor funding.
According to the bank, the mechanism is intended to address a major obstacle for Ukrainian businesses, which remain fully responsible for loan repayments even when property or equipment financed by loans is destroyed in attacks. Limited access to war-risk insurance has also discouraged investment during the conflict.
The EBRD said the programme is designed to help businesses continue operating, preserve jobs and encourage long-term investment despite wartime uncertainty. The mechanism will apply only to loans financing fixed assets, while all claims will undergo verification before compensation is provided.
The pilot programme will initially operate through PrivatBank and Raiffeisen Bank Ukraine, with allocations of €6.8 million and €1.2 million respectively. The EBRD said the mechanism could later be expanded to other Ukrainian financial institutions with additional donor support.
Since the start of Russia’s full-scale invasion in 2022, the EBRD has invested €9.7 billion in Ukraine, focusing on energy security, critical infrastructure and support for the private sector.
