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Annual

Review
2022
Contents
01 About the EBRD

02 President’s message

03 Introduction

04 The EBRD in numbers

05 Operational and financial results 2018-22

06 Where we invest

08 The EBRD will stand by Ukraine

10 Energy security in the EBRD regions


11 Case studies

12 The EBRD and food security


13 Case studies

14 Green: Fully Paris aligned and delivering


on 2025 green objective
16 Case studies

20 Inclusive: Addressing inequality as human angle


remains the key focus in the Ukraine crisis
22 Case studies

26 Digital: Stepping up progress on delivering


the digital transition
28 Case studies

30 Abbreviations

This document is a summary of our


activities in 2022.
Visit ar-ebrd.com and www.ebrd.com for
details of our projects and more on the
people and places who benefit from them.
About the EBRD
The European Bank for Reconstruction and Development (EBRD) promotes
the development of sustainable, private sector-led economies in central
and eastern Europe, Central Asia and North Africa. The Bank helps them to
address 21st-century challenges and lends support to improve the lives and
environments of citizens across society.
Through investment, policy reform and advisory projects, the Bank works to make
economies more competitive, well governed, green, inclusive, resilient and integrated.
These “transition qualities” best equip countries for a prosperous and equitable future
for all.

The EBRD aims to be a majority green bank by 2025.

The Bank’s goals are closely aligned with those of the United Nations 2030
Agenda for Sustainable Development, which aims to deliver economic, social and
environmental progress.

The EBRD invests in projects that cannot be funded solely by the private sector, but
which follow sound banking principles. It works mainly with private clients, though it
also finances public entities that deliver essential infrastructure, goods and services.

It also partners with donors that provide funding for advisory and technical assistance
projects crucial to the success of Bank investments.1

The EBRD is owned by 71 shareholder governments, the European Union and the
European Investment Bank. It operates from its Headquarters in London, with a
network of Resident Offices and satellite offices in 35 countries.

1 More information on donors’ crucial contribution to the EBRD’s work


can be found at https://www.ebrd.com/who-we-are/our-donors.html

01 EBRD Annual Review 2022


President’s message

"We have often been tested


in a crisis, but this one is
different. We must stay the
course and find new ways
to expand our support and
ensure that our expertise
has the greatest impact."

The year 2022 was like no other in the I must also acknowledge our staff’s efforts to deliver Annual
Bank Investment of €13.1 billion, the highest in our history.
EBRD’s history. A member country, one Their determination to focus on the task in hand was truly
of our largest markets, was subjected admirable – especially for those facing personal upheaval
and displacement, but also so many others who share our
to a relentless military invasion that has commitment to making our countries stronger and more
brought death, destruction and terror. We successful.
have committed all of our efforts and taken The vast majority of our investment in 2022 – 74 per cent –
went to the private sector. As I travelled throughout our regions
considerable risk to support Ukraine, as the during the year, I saw first hand the impact of our backing for
Annual Review makes clear. We have done infrastructure projects, for small businesses, for trade finance
this, while maintaining our focus on our and so many other areas. The capacity-building that goes
alongside these projects is equally impressive, with our advisory
strategic priorities and continuing to support and policy activities among the most distinctive elements of our
the economies where we work. work on the ground.
This is often made possible by funding from our donors and
Over the course of two years, by the end of 2023, we will have partners. The European Union is the Bank’s largest donor and
deployed at least €3 billion in Ukraine, half of which will be on our has played a key role in our work in Ukraine, alongside the
balance sheet, the remainder backed by the unwavering support extraordinary contributions of other shareholders, including the
of our shareholders. At the end of 2022, that figure had already United States of America, Norway, the Netherlands, Canada,
reached €1.7 billion, with a further €200 million mobilised by France, Germany and the United Kingdom. Other donors
partner banks as a result of our efforts. have also provided grants to vital causes such as small and
The investments have gone into many areas of Ukraine’s real medium-sized enterprises, capacity-building, policy reform and
economy – energy supply, transport links, food security and municipal infrastructure. I am grateful to all of our partners in this
pharmaceuticals. We have also helped the country to organise endeavour.
its response by repurposing our Ukraine Reform Architecture Never has that support been more necessary or more welcome.
programme, and we played an important role in convening We have often been tested in a crisis, but this one is different.
international partners, coordinating their support. We must stay the course and find new ways to expand our
The effects of the war have been felt by all countries in our support and ensure that our expertise has the greatest impact.
regions, with high levels of inflation just one of the consequences. We have made a good start, but there is much more to do.
The EBRD stood by its clients and countries of operations to
provide exceptional support in these circumstances. While
investing in areas such as energy and food security, we have
kept sight of our key goals: tackling climate change, supporting
more equal societies and building digital capacity in our investee
economies. As 2022 drew to an end, the global community
gathered in Egypt for COP27, and we were proud to be the
country’s lead partner in its ambitious new push for more
renewable energy and less reliance on inefficient fossil fuels. Odile Renaud-Basso
EBRD President
What is more, we delivered on our promise to align all of the Bank’s April 2023
activities with the Paris Agreement from the start of 2023. This is an
important landmark that brings us closer to our net-zero ambitions.

02 EBRD Annual Review 2022


Introduction
The EBRD had record impact across its The Russian invasion of Ukraine had a strongly negative impact
on the value of the EBRD’s portfolio of investments, resulting in a
regions in 2022. The Bank stepped up its significant net loss of €1.1 billion.
investments and was particularly vigorous in Trade finance made a significant contribution to the EBRD’s
its support of Ukraine in the face of Russian support for its regions in 2022, with the Bank delivering trade
deals under the Trade Facilitation Programme (TFP) worth
aggression. €3.6 billion, up from €3.2 billion in 2021.
Annual Bank Investment (ABI) rose to an unprecedented Internally, the Bank made a number of changes to enhance its
€13.1 billion, up 25 per cent from the previous year’s performance in pursuit of its key goals, including the creation of
€10.4 billion. a department to better define and track the delivery of climate
targets and another to monitor more effectively the overall impact
Donors played a crucial role in the EBRD’s overall investment of the organisation’s work.
performance in 2022, providing a record €2.1 billion, more than
half of which was dedicated to Ukraine. Also in 2022, the EBRD moved to its new London Headquarters
in the financial district of Canary Wharf, establishing its base
The EBRD’s €2 billion Resilience and Livelihoods Framework, in one of the UK’s most environmentally advanced offices, in
unveiled rapidly in response to the Russian invasion, offered keeping with its credentials as a major force in sustainable
immediate help to people, companies and the economy in development.
Ukraine and other countries affected by the conflict.
Meanwhile, shareholders at the EBRD’s Annual Meeting in
By the end of the year, the Bank had deployed a total of Morocco in May approved in principle a limited and incremental
€1.7 billion in Ukraine alone, acting counter-cyclically in an extension of the Bank’s activities into sub-Saharan Africa
extremely challenging investment environment. and Iraq. Recognising the EBRD’s focus on Ukraine and other
Other regions also benefited from an increase in investment, with economies in its regions, shareholders acknowledged the value
financing for central Europe and the Baltic states jumping more that the Bank could add in sub-Saharan Africa and Iraq.
than 86 per cent to €2.35 billion. Investments in Poland, a major An assessment that takes into account the impact of the war on
destination for Ukrainians fleeing the conflict, were up 66 per Ukraine is being prepared ahead of the 2023 Annual Meeting.
cent, while financing for neighbouring Moldova increased fivefold
to €525 million from €106 million.
The Bank made excellent progress on the three priorities of
its Strategic and Capital Framework 2021-25, with green
investments at 50 per cent of overall ABI, in line with its goal of
being a majority green bank by 2025. Strong progress was also
made in the areas of equality of opportunity and digital transition.

03 EBRD Annual Review 2022


The EBRD in numbers 2022

Number of projects: Annual Bank Investment (ABI):

431 € 13.1 billion


Private sector percentage of ABI: Private-sector volume of ABI:

74% € 9.6 billion


Portfolio of operations, including undisbursed commitments: Gross annual disbursements:

€ 53.5 billion 2
€ 8.8 billion
Trade deals worth €3.6 billion completed under the TFP: Financing provided to partner financial institutions in support
of on-lending to micro, small and medium-sized enterprises:

1,768 € 1.28 billion


Financing provided to partner financial institutions in support Number of advisory projects initiated in 2022 under the
of on-lending to women-led enterprises: Small Business Initiative:

€ 182 million 2,116

2 This figure includes outstanding portfolio operations in Cyprus, where the Bank’s mandate concluded at the end of December 2020, with no new investments made thereafter.
The value of the outstanding portfolio of EBRD investments in Cyprus was €196 million on 31 December 2022.

04 EBRD Annual Review 2022


Operational results 2018-22
2022 2021 2020 2019 2018

Number of projects 3
431 413 411 452 395

Annual Bank Investment4 (€ million) 13,071 10,446 10,995 10,092 9,547

Annual mobilised investment5 (€ million) 1,746 1,750 1,240 1,262 1,467


of which private direct mobilisation6 803 908 411 460 1,059

Total project value7 (€ million) 38,028 39,781 27,224 34,884 32,570

Financial results 2018-22


€ million 2022 2021 2020 2019 2018

Net (loss)/profit (1,117) 2,502 290 1,432 340

Transfers of net income approved by the (123) (80) (115) (117) (130)
Board of Governors8
Net (loss)/profit after transfers of net income (1,240) 2,422 175 1,315 210
approved by the Board of Governors
Paid-in capital 6,217 6,217 6,217 6,217 6,215
Reserves and retained earnings 13,119 14,128 11,674 11,613 10,068

Total members’ equity 19,336 20,345 17,891 17,830 16,283

To learn more about the EBRD’s financial results, see the Financial Report 2022.

Potential transition impact of new project signings


For information about the transition impact of EBRD projects signed in 2022, visit ar-ebrd.com

3 The number of projects to which the EBRD made commitments in the year.
4 Annual Bank Investment (ABI) is the volume of commitments made by the Bank during the year. This includes: (i) new commitments (less any amount cancelled or
syndicated within the year); (ii) restructured commitments; and (iii) amounts issued under the TFP during the year and outstanding at year end.
5 Annual mobilised investment is the volume of commitments from entities others than the EBRD made available to the client due to the Bank’s direct involvement.
6 Private direct mobilisation is financing from a private entity on commercial terms due to the Bank’s active involvement.
7 Total project value is the total amount of finance provided to a project, including both EBRD and non-EBRD finance, and is reported in the year in which the project first
signs. EBRD financing may be committed over more than one year, with ABI reflecting EBRD finance by year of commitment (see footnote 4). The amount of finance to be
provided by non-EBRD parties is reported in the year the project first signs.
8 Transfers of net income are accounted for as a transaction with equity holders recognised in the statement of changes in equity.

05 EBRD Annual Review 2022


Where we invest
EBRD Annual Bank Investment by economy and region in 2022 (€ million)
Visit ar-ebrd.com for details of our projects and the people who benefit from them.

* The EBRD has suspended Russia and


Central Europe and 03 Belarus from receiving funding for
projects or technical cooperation,
the Baltic states 37 following the invasion of Ukraine.
05
01 Croatia
02 Czech Republic 37 06
03 Estonia
04 Hungary
20
05 Latvia
06 Lithuania 07
07 Poland
08 Slovak Republic
09 Slovenia 02
23
08
24
09 04 26
16
22
01 11 17
12
14 21 29
15 25
13
18
10 36 38 28
27
19

34 32

33 35
31 South-eastern Eastern Europe Central Asia
Europe and the Caucasus 24 Kazakhstan
10 Albania 18 Armenia 25 Kyrgyz Republic
30
26 Mongolia
Southern and eastern 11 Bosnia and Herzegovina 19 Azerbaijan
27 Tajikistan
12 Bulgaria 20 Belarus*
Mediterranean 13 Kosovo 21 Georgia 28 Turkmenistan
30 Egypt 33 Morocco 14 Montenegro 22 Moldova 29 Uzbekistan
31 Jordan 34 Tunisia 15 North Macedonia 23 Ukraine
32 Lebanon 35 West Bank and Gaza 16 Romania 36 Greece
17 Serbia 37 Russia*
38 Türkiye

Central Europe and the Baltic states (CEB) South-eastern Europe (SEE)
Map Cumulative Active Map Cumulative Active
ref. Economy 2022 2021 2020 2019 2018 to end 2022 portfolio ref. Economy 2022 2021 2020 2019 2018 to end 2022 portfolio
01 Croatia 297 176 151 123 171 4,456 989 10 Albania 154 201 194 148 284 1,934 1,050
02 Czech Republic 111 8 – – – 1,340 166 Bosnia and
11 120 140 187 315 195 2,947 1,234
03 Estonia 74 56 126 36 54 893 241 Herzegovina
12 Bulgaria 103 247 103 38 185 4,401 912
04 Hungary 215 63 84 63 124 3,513 840
05 Latvia 76 113 21 85 42 985 306 13 Kosovo 91 50 36 118 52 589 342

06 Lithuania 208 125 116 64 141 1,382 593 14 Montenegro 23 22 160 38 30 724 319
07 Poland 990 598 789 833 556 12,401 3,894 15 North Macedonia 252 134 61 160 164 2,492 1,039
08 Slovak Republic 114 86 59 145 101 2,864 689 16 Romania 709 546 340 372 443 10,280 2,544
09 Slovenia 265 40 65 118 77 1,489 587 17 Serbia 648 499 679 517 396 7,927 2,593
Total 2,350 1,266 1,412 1,467 1,267 29,3229 8,305 Total 2,099 1,839 1,760 1,705 1,749 31,295 10,033

Private-sector share of the Sectoral distribution of CEB Private-sector share of the Sectoral distribution of
CEB portfolio: Annual Bank Investment (ABI): SEE portfolio: SEE ABI:

91% 40% 43% 18% 51% 44% 29% 27%

CEB annual mobilised Financial institutions SEE AMI: Financial institutions


investment (AMI): Industry, commerce and agribusiness €356 million (2021: €254 million) Industry, commerce and agribusiness
€211 million (2021: €58 million) Sustainable infrastructure Sustainable infrastructure

9 This figure includes investments made in the Czech Republic before 2008.

06 EBRD Annual Review 2022


Eastern Europe and the Caucasus (EEC) Greece
Map Cumulative Active Map Cumulative Active
ref. Economy 2022 2021 2020 2019 2018 to end 2022 portfolio ref. Economy 2022 2021 2020 2019 2018 to end 2022 portfolio
18 Armenia 117 175 158 118 70 2,003 434 36 Greece 687 838 797 571 846 6,426 2,183
19 Azerbaijan 86 34 17 17 304 3,588 843
20 Belarus10 – 17 212 391 360 2,858 354 Private-sector share of the Sectoral distribution of
21 Georgia 218 295 618 296 267 4,986 1,330 Greek portfolio: Greece ABI:
22 Moldova 525 106 117 111 23 2,094 1,108 97% 62% 26% 12%
23 Ukraine 1,460 1,065 812 1,125 543 18,096 4,671
Greek AMI: Financial institutions
Total 2,405 1,693 1,933 2,058 1,567 33,625 8,739 €42 million (2021: – ) Industry, commerce and agribusiness
Sustainable infrastructure
Private-sector share of the Sectoral distribution
EEC portfolio: of EEC ABI: Russia12
40% 29% 39% 33% Map Cumulative Active
ref. Economy 2022 2021 2020 2019 2018 to end 2022 portfolio
EEC AMI: Financial institutions 37 Russia – – 0.4 – 0.2 25,355 800
€212 million (2021: €111 million) Industry, commerce and agribusiness
Sustainable infrastructure
Private-sector share of the
Russian portfolio: Sector distribution of Russian ABI:
Central Asia
Map Cumulative Active 84% n/a
ref. Economy 2022 2021 2020 2019 2018 to end 2022 portfolio
24 Kazakhstan 480 558 403 685 472 9,845 2,915
25 Kyrgyz Republic 41 31 22 46 38 881 169
26 Mongolia 108 37 144 98 96 2,185 885 Türkiye
27 Tajikistan 21 56 131 18 54 908 524 Map Cumulative Active
ref. Economy 2022 2021 2020 2019 2018 to end 2022 portfolio
28 Turkmenistan 2 8 20 11 11 334 35
38 Türkiye 1,634 2,002 1,675 1,002 1,001 16,985 7,215
29 Uzbekistan 839 607 429 517 397 3,897 2,257
Total 1,490 1,298 1,150 1,376 1,067 18,050 6,785
Private-sector share of the Sectoral distribution
Turkish portfolio: of Turkish ABI:
Private-sector share of the Sectoral distribution of
Central Asian portfolio: Central Asia ABI: 87% 55% 23% 22%

49% 28% 6% 65% Turkish AMI: Financial institutions


€362 million (2021: €572 million) Industry, commerce and agribusiness
Central Asian AMI: Financial institutions Sustainable infrastructure
€180 million (2021: €572 million) Industry, commerce and agribusiness
Sustainable infrastructure

Southern and eastern Mediterranean (SEMED)11


Map Cumulative Active
ref. Economy 2022 2021 2020 2019 2018 to end 2022 portfolio
30 Egypt 1,343 1,005 1,046 1,214 1,148 10,144 4,798
31 Jordan 141 168 73 87 296 1,930 1,211
32 Lebanon 5 6 28 164 244 859 196
33 Morocco 528 211 742 204 198 3,913 1,872
34 Tunisia 387 120 242 177 100 1,879 1,124
Total 2,404 1,510 2,131 1,847 1,985 18,747 9,201

Private-sector share of the Sectoral distribution of


SEMED portfolio: SEMED ABI:
52% 53% 14% 33%

SEMED AMI: Financial institutions


€384 million (2021: €183 million) Industry, commerce and agribusiness
Sustainable infrastructure

10 In April 2022, the EBRD Board of Governors decided to suspend Belarus’ access to Bank resources in response to the invasion of Ukraine. The Bank has closed its
offices in Minsk. Belarus continues to be a shareholder of the Bank.
11 This table does not include investments in the West Bank and Gaza (map reference 35), which began in 2018 and are financed through a trust fund. For 2022, these
investments totalled €22.3 million.
12 The Bank has made no new investments in Russia since 2014. In April 2022, the EBRD Board of Governors decided to suspend Russia’s access to Bank resources in
response to the invasion of Ukraine. The Bank has closed its offices in Moscow. Russia remains a shareholder of the EBRD.

07 EBRD Annual Review 2022


The EBRD will stand by Ukraine
The EBRD responded immediately to Russia’s It also promised support for post-war reconstruction once
conditions allowed.
invasion of Ukraine, issuing an expression of
By the end of 2022, the Bank had deployed a total of €1.7 billion
unwavering support for the Ukrainian people in Ukraine. Donor funding played a critical role in the EBRD’s
on 24 February, the day hostilities began. support for the country, with the Bank mobilising more than
€1.2 billion in donor funds. In Ukraine, the Bank placed
“The EBRD will stand by Ukraine,” President Odile Renaud-Basso immediate priority on investment in five key areas: trade finance,
said in a message to the country’s authorities. energy security, vital infrastructure, food security and private-
sector resilience.
The Bank was the first international financial institution to unveil
a response package for Ukraine and other countries affected by The EBRD’s TFP made a significant contribution to the Ukrainian
the war, while simultaneously acting to ensure the safety of staff economy, with provisions for Ukrainian banks worth €459 million
as Ukraine came under attack. to facilitate trade transactions for the country’s most crucial
goods, including imports of agricultural machinery and fertilisers.
EBRD employees and family members were offered resettlement
opportunities, with a significant number of staff moving to The focus on energy security involved an initial injection of
Warsaw and other locations. liquidity to electricity transmission company Ukrenergo to keep
services running. That was followed by a €370 million financial
The EBRD condemned the aggression by Russia and Belarus, package for Ukrenergo to repair damage after a huge escalation
with the Board of Governors voting to formally suspend both of Russia’s attacks on Ukraine’s civilian energy infrastructure.
countries from access to the Bank’s finance and expertise. The
EBRD offices in Moscow and Minsk were closed. The Bank provided donor-backed financing to state-owned
gas company Naftogaz, so it could supply energy to Ukrainian
President Renaud-Basso led an EBRD delegation to Ukraine in customers during the winter and beyond.
October and was the first head of a multilateral development
bank to visit Kyiv since the start of the war. Ukraine’s railway system, vital to the transportation of food and
other basic goods and the mass evacuation of people affected
On 9 March, the Bank announced a €2 billion Resilience and by the crisis, was kept running with the help of repurposed
Livelihoods Framework that offered immediate help to the people, EBRD financing. The Bank also supported the city of Lviv with a
companies and economy of Ukraine and other affected countries. liquidity line.
The Bank pledged to deploy €3 billion in Ukraine over the 2022- Technical assistance and finance delivered support to key
23 period, reaching out to the donor community with a view to logistics and delivery companies, while grant funding via the
combining donor guarantees and the Bank’s own investments on national postal system helped maintain Ukraine’s internet
a 50:50 basis. access, keeping people connected even in remote rural areas
of Ukraine, despite Russia’s prolonged attacks on the country’s
electricity infrastructure.

08 EBRD Annual Review 2022


A combination of risk-sharing agreements and loans helped As the scale of destruction grew bigger than originally anticipated,
provide financial support to companies crucial to food production it became clear that the impact on the Ukrainian economy would
and distribution, both directly and via the banking system. be much worse than feared.
Similarly, the EBRD provided crucial support to non-food
After a likely economic contraction in 2022 of 30 per cent, initial
production and services companies, with an initial focus on the
hopes of a 25 per cent rebound in 2023 had been wound back
pharmaceutical sector.
significantly to just 1 per cent in 2023 and 3 per cent in 2024.
The Bank also delivered support via its Ukraine Reforms
Looking ahead to the post-conflict reconstruction period, the
Architecture (URA) programme, helping businesses to weather
EBRD agreed to lead a report to assess the damage to – and the
the impact of conflict and conducting damage assessment. URA
costs of rebuilding – the devastated port city of Mariupol, even
teams later turned to supporting broader economic recovery,
while it remained occupied by Russian forces.
European Union (EU) integration and the upkeep of critical
infrastructure and were instrumental in developing the country’s
National Recovery Plan.
In neighbouring countries, many of which welcomed a huge
number of refugees, the emphasis was on energy security,
including emergency energy purchases to compensate for the
loss of imports from Russia and Belarus, support for municipal
services and livelihoods for displaced persons, trade finance and
the provision of liquidity for small businesses.

09 EBRD Annual Review 2022


Energy security in the EBRD regions
Energy security is a key priority within the Separate funding was delivered simply “to keep the lights on”,
with an earlier loan to national electricity company Ukrenergo
EBRD’s overall energy strategy, which helps to modernise key infrastructure repurposed into an injection of
countries in the Bank’s regions to gain emergency liquidity.
access to the power they need to fuel their After Russian attacks inflicted widespread damage on Ukraine’s
civilian energy infrastructure, a subsequent financial package to
economies and pursue their climate goals. Ukraine allowed Ukrenergo to make swift emergency repairs just
as the winter was setting in.
When Russia’s war on Ukraine disrupted energy supplies and
forced up prices, addressing the challenge of energy security In all cases, donor funding played a crucial role.
assumed even greater importance throughout the EBRD regions. A loan to Moldova’s state-owned energy trader financed the
The conflict threw a renewed spotlight on the urgent need to acquisition of strategic gas reserves on European Union hubs to
reduce energy consumption, primarily through energy efficiency, supplement those provided by Russia through Ukraine.
to diversify sources of energy away from fossil fuels and to make Energy security challenges were also addressed with steps to
even more progress towards decarbonisation, especially by further integrate more EBRD recipient countries into the EU
supporting renewables. energy grid.
The goals of energy security and the green agenda, both globally This was behind the Bank’s investment in a sustainability-linked
and as a major plank of the EBRD’s own strategy, moved into bond issued by the energy transmission system in Lithuania.
even closer alignment. The project supported the country’s ambition to synchronise
The Bank’s experience in these areas meant it was well placed to its electricity grid with the EU network by 2025 rather than rely
make an important contribution, including through its ambition of on the Belarus, Russia, Estonia, Latvia and Lithuania (BRELL)
becoming a majority green bank by 2025. electricity ring.
In Ukraine and in other neighbouring countries affected by the The Bank also pursued investments aimed at further deepening
Russian invasion, an urgent priority was to respond to immediate the integration of EBRD economies both internally and with other
energy requirements. The EBRD acted rapidly to ensure that countries in the EU and beyond.
Ukrainian families, businesses and the wider economy had Financing from the EBRD and other international lenders for
access to power. the expansion of the Poland’s pivotal Baltic port of Gdansk was
Financing was made available to gas company Naftogaz so that a boost to this integration, addressing supply-chain disruptions
it could buy gas for the next heating season for millions of people caused by the war on Ukraine.
whose livelihoods and economic security had been threatened. While focusing on the immediate energy requirements that
arose from the war on Ukraine, the EBRD did not lose sight of
the medium-term goals of its Green Economy Transition (GET)
approach, a key pillar of its current strategy.
The EBRD’s green investments accounted for a 50 per cent share
of total 2022 financing across its regions, in line with the Bank’s
target of becoming a majority green bank by 2025. For more
details, see page 14 of this report.

10 EBRD Annual Review 2022


Energy security case studies
Keeping the power flowing in war-torn Ukraine Bolstering energy security with a financial package
for Naftogaz

The EBRD moved quickly to maintain the flow of electricity The EBRD addressed energy shocks in Ukraine with a loan of up
to Ukraine’s economy after the Russian invasion. Backed by to €300 million to help gas company Naftogaz make emergency
guarantees from the EU and the United Kingdom, an existing gas purchases and secure heating and electricity for households
and undisbursed EBRD loan to electricity transmission company and businesses in time for winter. The EBRD finance was backed
Ukrenergo to modernise key infrastructure was repurposed and by partial risk cover from the United States of America, Canada,
delivered as emergency liquidity funding in two tranches worth a Germany and France. Norway agreed to provide a €190 million-
total of €147.3 million. equivalent grant to top up the EBRD loan.

Supporting repairs to Ukraine’s power system €300 million loan to safeguard energy security in Moldova

As Russia’s attacks on Ukraine’s civilian energy infrastructure The EBRD provided a €300 million revolving loan to Moldova,
intensified, causing widespread damage and dealing a huge including €200 million for the purchase of emergency gas
blow to energy supplies, the EBRD agreed a financing package supplies to safeguard the needs and economic livelihoods of
worth €370 million – backed by a US guarantee and including 2.7 million Moldovans and refugees from Ukraine. An earlier
a €70 million grant from the Netherlands – so Ukrenergo could €100 million tranche allowed state-owned energy trader JSC
make swift emergency repairs as winter set in. Energocom to procure gas on EU hubs.

Supporting EU energy integration in Lithuania Keeping the energy flowing with financing for a major
Slovenian supplier

EBRD investments in a sustainability-linked bond from A €30 million financing facility for Petrol Group of Slovenia
Lithuania’s energy transmission system operator aimed to help provided liquidity to help the company tackle the challenges of
the country diversify energy supplies and bolster energy security. the energy crisis arising from the war on Ukraine. Petrol Group
The project supports Lithuania’s ambition to synchronise its is the leading energy supplier in Slovenia and a key player in
electricity grid with the EU network by 2025. The country is Croatia as well as south-eastern Europe (SEE).
currently part of the BRELL electricity ring.

11 EBRD Annual Review 2022


The EBRD and food security
The war on Ukraine had a severe impact on companies of all sizes.
food supply chains across the EBRD regions, The food security challenge in SEMED economies was particularly
acute, as the region is so dependent on imports of grain and
leading to an immediate increase in food wheat. Tunisia, for example, relies on foreign markets for two-
prices and market volatility and posing a thirds of its wheat and barley needs, and it was here that the
Bank launched its initial programme of support for food security
major threat to food security. in SEMED under the Ukrainian response plan.
Already a major priority in its regions, addressing the food The EBRD’s €150.5 million loan to Tunisia’s state-owned Office
security challenge was a key element of the EBRD’s Ukraine des Céréales (ODC) funded imports of soft wheat, durum wheat
crisis response. It tackled both supply- and demand-side issues. and barley, corresponding to some 15 per cent of Tunisia’s
The Bank’s trade finance programmes played a crucial role. annual consumption.
One of the world’s largest exporters of grain, Ukraine needed The support for a state-run enterprise represented a shift in
fast support across the whole agricultural spectrum. The Bank the traditional private-sector focus of the EBRD’s agribusiness
provided help for the primary farming sector in the sowing and investments, reflecting the importance of the public sector in
harvesting seasons, as well as for retailers and exporters. SEMED economies when it comes to food imports and security.
The public sector’s pivotal role in the industry made it an
On the other side of the equation, economies in the EBRD’s indispensable partner in a time of crisis.
southern and eastern Mediterranean (SEMED) region, some
of the world’s largest importers of cereals, were immediately In addition to the financial element of the ODC project, the
affected by supply-chain interruptions and rising prices. Bank provided technical support to address weaknesses in
the grains sector. This also aimed to promote the progressive
The Bank responded with a programme of finance as well as liberalisation of grain imports and guide the reform of ODC
technical support. towards commercialisation, assisting it with operational efficiency,
To boost food security in its regions, the EBRD invests across the corporate governance practices and standards improvements.
entire food value chain, from farming and processing to logistics More generally, across the whole SEMED region, the EBRD, in
and retail. Improving infrastructure and trade links is especially close cooperation with other international financial institutions
vital for targeting investment bottlenecks. In total, the EBRD and donors, sought to provide critical emergency financial
invested €874 million in agribusiness projects across its regions support to governments to address the emerging food security
in 2022. challenges.
In its Ukraine response, the EBRD threw its weight behind the The Bank is also partnering with the Food and Agriculture
European Union’s Solidarity Lanes action plan to facilitate the Organization of the United Nations to provide technical assistance
export and import of Ukrainian grains and other goods, with a and policy dialogue support with a view to enhancing the role of
pledge to invest €300 million in the programme to support both the private sector in the grain and oilseed supply chains in the
the Ukrainian economy and access to food for those countries longer term.
that rely on Ukrainian exports.
Trade finance support in the food and agribusiness sector in
In Ukraine, the Bank provided direct loans to food companies, the SEMED region, alone, amounted to more than €600 million
while a series of risk-sharing agreements enhanced the ability of in 2022, with €280 million going to Egypt and €297 million to
banking partners to provide much-needed finance to companies Morocco.
operating in critical agribusiness sectors.
The EBRD’s TFP supported more than 400 transactions, for a
total of over €1 billion of foreign trade in the agribusiness and
foods sector across all regions in 2022.
This support covered the commercial and political risks of trade,
ranging from importing agricultural machinery from Italy for
grain storage facilities in Ukraine to importing fertiliser to
Ukraine from the Czech Republic. Other TFP transactions
included the provision of finance for the first Egyptian
imports of Ukrainian grain after a blockade on Ukrainian
ports was lifted.
Amid the continuing Russian onslaught on Ukraine,
the Bank launched AgriAcademy, a free-to-use
online learning platform for more than 10,000
employees in Ukrainian agricultural and food

12 EBRD Annual Review 2022


Food security case studies
Food-security loan helping to ensure flow of grain to Tunisia Securing food supplies in Ukraine with a loan to MHP

The EBRD helped a major grain importer in Tunisia maintain A €24 million loan to agribusiness group MHP helped secure
international purchases as the war on Ukraine disrupted trade the continued supply of food in Ukraine despite the Russian
flows. A €150.5 million loan to the ODC funded imports of soft invasion. The financing provided working capital to back MHP’s
wheat, durum wheat and barley, corresponding to some 15 crop-farming operations, helping to maintain supply chains and
per cent of Tunisia’s annual consumption. It also supported safeguard livelihoods.
reforms to the grain sector.
Joining Raiffeisen Bank to support yeast producer Enzym Securing lending to Ukrainian food producers with bank guarantees

The Bank teamed up with Raiffeisen Bank through an EBRD The EBRD helped ensure supplies of food for the people of
risk-sharing facility to back a working-capital loan to Enzym, Ukraine by issuing risk-sharing instruments that boosted local
Ukraine’s leading baker’s yeast producer. The loan is helping financing for companies engaged in producing, processing,
Enzym, which supplies more than 50 per cent of all yeast for transporting or importing food. The Bank covered €30 million of
bread production in Ukraine, to maintain production levels for a total €53.3 million of this lending by ProCredit Bank, OTP Bank
the 2022 and 2023 seasons. Ukraine and OTP Leasing.

Helping SMEs affected by the Ukraine war, addressing food security €20 million for lending to Romanian farmers to enhance food
security

The EBRD extended a €20 million loan to agricultural lender


A €10 million loan to Bank Lviv under the Resilience and
Agricover Credit to increase food security and production in
Livelihood Framework targeted Ukrainian small and medium-
Romania and beyond. The financing provided loans to farmers
sized enterprises (SMEs) suffering from the shocks of war,
to finance investment and working-capital needs as part of the
through on-lending to firms involved in food security and
EBRD’s response to support countries and companies affected by
companies that had been forced to relocate their business to
the war on Ukraine.
the western part of the country.
Partnering with banks to safeguard lending to Ukrainian
food producers

The EBRD signed risk-sharing agreements with Raiffeisen Bank


and Ukrsibbank BNP Paribas to back loans to support the
operations of Astarta, the major Ukrainian agricultural and food
processing company. The financing helped Astarta prepare for a
successful crop-farming season, despite the major constraints of
the Russian invasion.

13 EBRD Annual Review 2022


Green
• Total investment in the Green Economy Transition
The EBRD maintained the pace of its green
in 2022: €6.4 billion13 investment in 2022, even as its focus
was drawn to providing emergency energy
• GET activities as a percentage of 2022 ABI: 50%
financing for Ukraine in the face of Russia’s
• Finance in 2022 for climate mitigation: €5.9 billion invasion.
• Finance in 2022 for climate adaptation: €246 million
With green financing worth €6.36 billion in 2022 – accounting for
• Finance for other environmental activities during 50 per cent of total investment – the EBRD met its 2025 goal of
ensuring that at least half of its investments were green, as it had
the year: €1.35 billion
in 2021.
• In 2022, renewable energy capacity that the EBRD Russia’s war on Ukraine and its weaponisation of energy
committed to financing: 4,652 MW underscored the importance of long-term energy security in the
Bank’s regions and added urgency to climate goals. Renewable
• Expected annual reduction in CO2 emissions
as a result of EBRD investments in 2022:
11.1 million tonnes

13 The numbers for mitigation, adaptation and other environmental activities add up
to more than €6.4 billion as some projects have multiple benefits.

14 EBRD Annual Review 2022


Fully Paris aligned and delivering on
2025 green objective
energy is not only a vital lever for decarbonisation, but also key to The Bank invested US$ 80 million (€75 million) in Egypt’s first
reducing dependence on hydrocarbon imports. green hydrogen facility, a 100 MW electrolyser plant powered by
renewable energy that will deliver up to 15,000 tonnes of green
The Bank had pledged to align all of its activities with the goals
hydrogen annually to be used in the production of low-carbon
of the Paris Agreement from 1 January 2023 and it achieved this
ammonia for the domestic and foreign markets.
target on time following a major overhaul of procedures.
Egypt, host of the 2022 COP27 international climate talks,
Developed in cooperation with the other multilateral development
underscored its strong ties with the EBRD by selecting the Bank
banks, the EBRD’s Paris alignment approach covers the Bank’s
as its lead development partner for the energy pillar of the
investment and lending activities, policy and strategy support and
country’s Nexus on Water, Food and Energy (NWFE).
internal activities (for example, treasury, mobility and facilities).
The EBRD will also monitor and report on its Paris-aligned As part of this ground-breaking plan, Egypt aims to retire 5 GW
activities. of inefficient oil- and gas-fuelled power capacity, reducing CO2
emissions, and develop 10 GW of solar and wind power by 2028,
Moreover, the Bank’s enabling framework will have a catalytic
including for green hydrogen production.
effect on its partners and their clients and encourage them to
map their own journeys towards net zero. The EBRD will support Egypt in addressing the key barriers to
the country’s decarbonisation agenda, including the need to
In December 2022, Jordan’s Bank al-Etihad became the first
strengthen the energy grid to absorb more renewable capacity
EBRD partner bank to sign up to making a transition plan,
and to provide a “just transition” for workers and regions affected
incorporating the EBRD’s Paris alignment methodology alongside
by the switch to more environmentally sustainable energy
a US$ 35 million (€32.8 million) loan.
resources.
The EBRD maintained the momentum of its investments in
At COP27, the EBRD also launched its Corporate Climate
energy efficiency and the accelerated development of renewable
Governance Facility, a bespoke advisory service that helps clients
energy sources to support its investee economies as they
plan their green transition. With €30 million of funding for its
progressed on the path to decarbonisation.
advisory services, the facility is aiming to work with more than
Green Cities 100 clients by 2024.

The Bank continued its rapid rollout of the Green Cities It will provide financial institutions, corporate and municipal
programme in 2022, with 16 projects signed, worth a total clients, as well as policymakers with access to tailored advisory
of €762.7 million, for an annual reduction in CO2 emissions services to help them upgrade their corporate climate governance
of 3,174 tonnes, equivalent to taking 689,982 cars off the and plan a green transition to bring them in line with international
road each year. More than 50 cities are now signed up to the best practice.
programme.
Climate adaptation focus
One highlight of the urban regeneration programme was the
Against a backdrop of extreme weather conditions in 2022 –
completion of the Green Cities action plan for the western
heatwaves in Central Asia, flooding across the Balkans, wildfires
Ukrainian city of Khmelnytskyi, despite the war with Russia.
in the eastern Mediterranean and droughts in North Africa – the
Resuming the programme to improve living conditions in the city, EBRD stepped up its work on climate adaption, building resilience
on hold since the February 2022 invasion, had become all the to climate change.
more urgent as a result of the strain on services following a large
The Bank developed an ambitious Climate Adaptation Action Plan
inflow of internally displaced people fleeing the conflict.
to catalyse its transformation, investment and policy activity over
The Bank finished the year with the rollout in December of its the next three years in the economies where it operates.
largest renewable project ever, arranging finance worth US$ 520
The plan involves accelerating the mainstreaming and policy
million (€487 million) to deliver two wind power plants with total
integration of climate adaptation activities across the Bank,
installed capacity of 1 GW in Uzbekistan’s Bukhara region.
developing partnerships and capacity building for enhanced
Its provision of EBRD green finance through the banking system, impact, and establishing proactive business development and
including via Green Economy Financing Facilities (GEFFs), totalled private-sector mobilisation.
€2.2 billion for the year.
In 2022, the EBRD took a major step forward in its promotion of
green hydrogen as a low-carbon component of the energy mix.

15 EBRD Annual Review 2022


Green case studies
Supporting the first green hydrogen facility in Egypt Investing in green bonds to mobilise finance for Egyptian renewables

The EBRD made an important contribution to the The EBRD invested in a bond issued by renewable power
decarbonisation of the fertiliser sector in Egypt and beyond with producer Scatec ASA to support a portfolio of six solar plants
a US$ 80 million loan (€75 million) to build Egypt’s first green in Benban, Egypt. It was the first private green project bond
hydrogen facility. The project consists of a 100 MW electrolyser, issuance in Egypt and the wider SEMED region and will have the
powered by a 55 MW solar photovoltaic (PV) plant and a 200 effect of mobilising new private and institutional capital for the
MW windfarm. The plant will produce green hydrogen for the renewables sector.
production of green ammonia for the domestic and foreign
markets.

Supporting Almaty power plant in switch from coal

Delivering the EBRD’s largest renewable project to date

The Bank provided €260 million in financing to support the


deep modernisation of the largest heat provider in Almaty,
Kazakhstan – Almaty CHP-2 – by replacing coal with natural gas
The EBRD arranged financing worth US$ 520 million (€487 as the primary fuel. The project will have an immediate impact
million) for two windpower plants with a total installed capacity on the local pollution and the city’s air quality, with the complete
of 1 GW in Uzbekistan’s Bukhara region – the EBRD’s largest elimination of dust and reductions in NOx and CO2 emissions of
renewable energy project to date. The new wind power plant will 86 per cent and 55 per cent per year, respectively.
generate more than 1,650 GWh of electricity annually and help
reduce CO2 emissions by 930,000 tonnes a year.

Istanbul metro loan promotes green, gender and inclusion agendas


Launching the Bank’s first Croatian windfarm investment

The EBRD’s first Green Cities investment in Istanbul was a loan


for the construction of the Goztepe-Atasehir-Umraniye metro line.
A €43 million loan for two windfarms in Croatia helped The loan was an extension of a 2019 financing arrangement.
increase the country’s share of renewable energy generation. The project will promote sustainable urban mobility by cutting
The project’s alternative electricity offtake arrangements pollution and congestion and boosting gender and inclusion
strengthened the role of the private sector by galvanising market through a youth learning programme and an equal opportunities
forces and removing the need for state subsidies. plan.

16 EBRD Annual Review 2022


Boosting integration and supporting the green agenda in Gdansk port EBRD invests in Morocco’s first green infrastructure bond

The EBRD set a significant investment milestone in Morocco


with its participation in the country’s first green bond in the
infrastructure sector. The proceeds of this local-currency issue
are being used to refinance debt taken on by national rail
operator ONCF for the construction of the electrified high-speed
rail line linking Tangiers to Casablanca.

Financing repowers Africa’s oldest wind farm

The EBRD joined other international lenders to finance the


expansion of Poland’s pivotal Baltic port of Gdansk.
The project will boost economic integration and security with
an investment in a third deep-water container terminal
developed by DCT Gdansk. It will bring significant
environmental improvements through advanced energy-
efficient technology, while addressing supply-chain disruptions
caused by the war on Ukraine.

The EBRD supported the first wind-repowering project in Africa


Pioneering loan promotes energy diversification in Azerbaijan to double the capacity of the continent’s oldest utility-scale wind
farm, the Koudia Al Baida facility in Morocco. The €49 million
financing package from the EBRD, backed by a €4.5 million
facility from the Climate Technology Fund, will increase the
capacity of the wind farm to 100 MW.

Donor-backed green London-style taxi fleet fosters e-mobility in Egypt

EBRD finance for the country’s first utility-scale solar project


enabled Azerbaijan to take an important step towards A loan to Egyptian transport company Abou Ghaly Motors
diversifying away from fossil fuels. The project sets a precedent financed the purchase of 250 London-style electric taxis, cutting
for further private-sector participation in Azerbaijan’s renewable harmful emission by encouraging greater use of e-mobility, while
energy market, actively supported by the EBRD at the policy and also promoting skills in the e-mobility sector and supporting the
investment level. delivery of safe and more accessible transport for women and
people with disabilities.

17 EBRD Annual Review 2022


Green case studies (continued)
Supporting North Macedonia’s “just transition” to solar power Financing solar energy for district heating in Kosovo

Kosovo became the first economy in the Western Balkans region


to use solar power to heat homes after the EBRD, Germany’s
KfW and the EU financed the construction of a solar plant to
power central heating in Pristina. The ground-breaking €80
million project enables the collection of energy during the
summer, along with its storage and use for winter heating.

Backing Morocco’s first municipal bond as Agadir signs up to


The EBRD, backed by an EU grant, is supporting North Green Cities
Macedonia’s decarbonisation agenda by financing two large-
scale solar plants with a capacity of 30 MW, including a 10 MW
project on an exhausted coalmine. The project supports a “just
transition” by addressing the social issues of the green transition
and providing redeployment and reskilling opportunities.
SDGs are placeholders

Cutting congestion and reducing pollution in Sarajevo

The EBRD invested MAD 400 million (€37 million equivalent) in


Morocco’s first municipal MAD 1 billion bond, providing finance
for the city of Agadir to implement its Urban Development
Programme, focusing on green and inclusive infrastructure
projects. The project launched Agadir’s participation in the
EBRD’s Green Cities scheme, the first municipality in Morocco
to do so.

A further boost for renewables in Türkiye

The EBRD is delivering environmental benefits to Sarajevo with


a €17 million Green Cities loan to help alleviate the city’s traffic
congestion and improve air quality. A new traffic management
system will cut commuting times and add five new trams to the
municipal fleet.

A US$ 100 million (€93.7 million) loan to renewables group


Adnan Polat Enerji Yatirim is set to produce an additional 200
MW in Turkish wind and solar capacity, prevent 154,000 tonnes
of CO2 emissions annually and enhance access to market-
relevant skills and employment opportunities for women and
young people.

18 EBRD Annual Review 2022


Boosting the use of renewables in Mongolia’s electricity supply Promoting Bank of Georgia’s green investments with
innovative loans

Financing for a new transmission line in Mongolia will improve


the flexibility and reliability of Mongolia’s electricity grid and
increase its ability to absorb renewable energy sources.
The project, backed by an EU grant, will contribute to the
decarbonisation of Mongolia, which is still highly dependent on
fossil fuels.

The EBRD promoted investment in green projects by Bank of


Georgia with a US$ 50 million (€46.8 million) package of loans
Supporting Greece’s largest urban regeneration project that serve as Additional Tier 1 (AT1) capital, the bank’s first ever
AT1 capital loan. Bank of Georgia will deploy the equivalent
of US$ 50 million on investments that meet the EBRD’s GET
criteria.

Fostering green investment, supporting women entrepreneurs


in Uzbekistan

The EBRD supported Greece’s largest urban regeneration


project by backing a green bond issued by Lamda Development
to transform the former Athens International Airport into a
sustainable commercial, residential and public hospitality area.
The bond – a successful green placement in difficult conditions
– funded green buildings and infrastructure, green energy and
smart-city technologies.

First investment under new green financing facility in Türkiye

The EBRD provided loans to Ipak Yuli Bank in Uzbekistan to


promote the green economy transition and support women
entrepreneurs. A GEFF worth the equivalent of US$ 6 million
(€5.6 million) will finance investments in climate change
mitigation and adaptation technologies. A US$ 4 million
equivalent (€3.7 million) loan will be used for lending to women-
led MSMEs.

The EBRD launched its new €500 million GEFF in Türkiye with a
€53.5 million loan to TSKB, co-financed by the Clean Technology
Fund. This first green credit line under the new facility aims to
help the country achieve its climate goals.

19 EBRD Annual Review 2022


Inclusive
New equality and gender strategies
• Total number of projects in 2022 with an inclusive
This year saw the first full year of the Bank’s new equality strategies
goal and/or gender additionality: 254 for 2021-25: the Strategy for the Promotion of Gender Equality
2021-25 and the Equality of Opportunity Strategy 2021-25.
• Gender SMART14 projects in 2022: 159
The EBRD achieved a record share of Gender SMART investments
• Gender SMART operations as a percentage of the in 2022. They increased to 37 per cent from 35 per cent in 2021,
total number of projects signed in 2022: 37% significantly exceeding the target of 25 per cent set for 2022.
The Bank also delivered a record number of operations promoting
• Number of investment operations in 2022 with an equality of opportunity across its regions in 2022. The number of
inclusive objective: 105 investments with an inclusive objective increased 87.5 per cent
from 2021 (from 56 to 105 operations), while the share stood at
24.4 per cent of all operations.

Russia’s war on Ukraine has been a stark Boosting the role of women in addressing
reminder of the importance of the human climate change
In 2022, the EBRD scaled up its efforts to support equality of
angle – the imperative of safeguarding and opportunity and an increased role for women in addressing
developing human capital – across the entire climate change.
spectrum of the EBRD’s activities. A crucial economic imperative for the Bank is to harness
the ingenuity, potential and business acumen of women to
Already one of the three priorities of the EBRD’s Strategic and successfully identify and deliver solutions to climate change and
Capital Framework for 2021-25, equality of opportunity has been other global challenges.
at the heart of projects launched in Ukraine and other countries
At the COP27 climate talks in Egypt, in partnership with the African
affected by the Russian invasion.
Development Bank and the Agence Française de Développement,
Under its Resilience and Livelihoods Framework, the EBRD invested the EBRD unveiled the Gender Equality in Climate Action (GECA)
in projects that preserved and improved the livelihoods of people initiative.
affected by the war and supported business continuity, ensuring an
This included the launch of a new tool – the GECA Accelerator – to
equitable and inclusive response to the Ukrainian crisis.
help companies across sectors improve the gender responsiveness
The Bank delivered emergency financing to energy companies, of their corporate climate governance. It also guides ministries in
food producers, transport providers and local authorities so they promoting gender-sensitive sectoral climate policies and strategies.
could continue their operations, pay salaries to their staff and
The Bank stepped up its support for gender equality in the
support the Ukrainian economy despite the disruption of war.
climate finance sector, with training for more than 400 staff and
The EBRD helped keep trains running and strengthened management, of which over 35 per cent were women, at
logistics services to maintain the delivery of goods and allow 14 partner banks across the EBRD regions via the GEFFs that
millions of Ukrainians to seek refuge away from the most violent support green investment by businesses and households.
theatres of war.
By organising a series of events and workshops on gender-
Bank staff also collaborated closely with the Ukraine Government responsive green finance, the Bank has now reached more
Commissioner for Gender Equality Policy to address a significant than 750 stakeholders. More than 55 per cent of them have
increase in gender-based violence and harassment (GBVH), been women from business, banking and industry associations,
ensuring that the EBRD addressed through its projects the regulators and partner banks, building important networks to boost
violence that had become prevalent during the war. women’s role as agents of change in the green transition.
Outside Ukraine, EBRD funding helped ensure that millions Promoting skills and a “just transition”
of refugees who fled to safety had access to accommodation
or could find work, especially women, who accounted for the One stand-out 2022 example of promoting equal opportunities
overwhelming majority of Ukrainians leaving their homeland. in skills and employment comes from the EBRD’s first waste-
management project in North Macedonia, which integrated
inclusive procurement in the solid waste sector – a blueprint for
other economies in the Western Balkans.
The project aims to open up skills and employment opportunities
for underserved groups, providing training for the local
population, including women, and people from the Roma
community, who have traditionally been involved in informal
waste-picking activities in North Macedonia and face significant
barriers to economic inclusion.

14 “Gender SMART” is a process to enable the systematic integration of gender into EBRD projects.

20 EBRD Annual Review 2022


Addressing inequality as human angle
remains the key focus in the Ukraine crisis
As the global and EBRD response to climate change continued The EBRD is Egypt’s lead partner in the NWFE’s energy pillar, an
apace, so did the EBRD’s drive to ensure support for workers as ambitious plan to step up the switch from inefficient oil and gas-
they shift away from industries that are no longer environmentally fuelled power to renewables including wind and solar.
viable or whose jobs have been “stranded” by the march of
The promotion of gender equality was also a key feature of the
technology.
EBRD’s successful Green Cities urban regeneration programme.
The EBRD’s “just transition” work – ensuring that the benefits In 2022, 88 per cent of the Green Cities projects signed during the
of the green economy transition are shared equally and that year were Gender SMART, focusing on promoting gender equality in
vulnerable countries, regions and people are not left behind – municipal green ambitions.
accelerated in 2022.
For example, in an e-mobility project to deliver 100 electric taxis in
A solar project in North Macedonia, building one plant on a the Tajik capital of Dushanbe, the Bank supported the creation of
disused coalmine, was just one such investment that specifically economic opportunities for 250 people by offering them training
identified the social implications of the green transition and defined programmes and improving their skills in the emerging electric
redeployment and reskilling opportunities at the public electricity vehicle sector.
generation utility.
The project offers women a role in a sector from which they had
A “just transition” is also integral to Egypt’s pioneering NWFE, a new been largely excluded in Tajikistan.
programme that received major international support at this year’s
COP27 in Sharm el-Sheikh.

21 EBRD Annual Review 2022


Inclusive case studies
Funding for Ukraine’s rail system keeps supplies flowing Emergency liquidity keeps services running in Lviv

A loan of up to €25 million to the city of Lviv provided emergency


liquidity to compensate for revenue losses and additional
expenses linked to the war, including the challenge of dealing
with refugees and displaced persons. The financing allowed
the city to keep up with day-to-day running, operating and
maintenance costs.

The Bank repurposed part of an existing loan to provide initial


liquidity of €50 million and then a further €98.8 million to the
Ukrainian Railways Company to keep trains running as the Easing the housing situation in Poland amid Ukraine war pressures
country grappled with the invasion by Russia. The financing
supported the movement of goods and people, including
displaced persons, and helped maintain Ukraine’s trade links
with the outside world.
SDGs are placeholders

Increasing the availability of medication in war-torn Ukraine

A €50 million loan to property company Resi4Rent aimed to


improve Poland’s housing situation amid pressures from the
inflow of refugees escaping the war in Ukraine. Resi4Rent will
use the finance for the development and operation of rented
apartments across Poland in Warsaw, Krakow, Wroclaw, Gdansk,
Lodz and Poznan.

The EBRD increased the availability of essential medicines to


the people of Ukraine during the conflict. A €20 million loan to
leading Ukrainian pharmaceuticals manufacturer JSC Farmak
under the Resilience and Livelihoods Framework provided the
company with emergency working capital to keep operations
running.
SDGs are placeholders

22 EBRD Annual Review 2022


Helping a Moldovan bank to support firms amid war in Capital for Uzbek pipe maker to promote jobs for women
neighbouring Ukraine

An investment that will provide working capital for Tashkent Pipe


Plant aims to boost the Uzbek firm’s operational efficiency and
increase import substitution. It will also provide more jobs for
women by introducing equal opportunity policies and practices
to raise the company's female workforce by 5-10 percentage
points.
A €50 million loan to Moldova’s largest bank, MAIB,
strengthened its funding base and helped it overcome
challenges caused by the war on Ukraine. The financing meant
MAIB was better equipped to support the Moldovan economy
Loan to Turkish oils producer boosts role of women in olive farming
with a focus on reaching out to private businesses affected by
the conflict.

Investment in Lithuanian retailer creates jobs for displaced Ukrainians

A US$ 50 million (€46.8 million) loan to Bunge, a leading


Turkish producer of edible oils, is providing finance for capital
requirements and enhancing the role of women in olive farming
by establishing a training academy to increase the access of
women to modern agro-techniques, specifically in the areas of
olive tree cultivation and maintenance.

An EBRD investment in Lithuanian retailer Maxima Grupė helped


secure jobs for Ukrainians fleeing their country. As part of the
EBRD investment in Maxima’s €240 million bond, the company
committed to hiring 720 more refugees, the majority of whom
were women. Maxima Grupė was one of the first companies to
offer jobs to Ukrainian refugees.

23 EBRD Annual Review 2022


Inclusive case studies (continued)
Boosting climate resilience, training young farmers in Türkiye Bond investment in Kazakh rail system promotes skills for
young people

A €7.5 million loan to Turkish seed producer May Seed will


increase competitiveness, giving it funding to promote greater
climate resilience through improved irrigation, increasing water
savings and boosting productivity. May Seed will also introduce
training for low-skilled young farmers, as well as programmes for An investment in a local-currency bond from Kazakhstan
more experienced farmers in less developed areas. Railways enabled the company to refinance hard currency and
SDGs are placeholders
Russian rouble-denominated debt, financed the modernisation
of rail infrastructure and promoted access to skills for young
people in the transport and logistics industry through new and
Investment in Georgia’s healthcare sector addresses critical improved, accredited learning programmes.
skills gaps

Finance for Kyrgyz railways boosts climate resilience,


inclusive training

Financing worth €11 million for Kyrgyz Railways will support


the modernisation of rolling stock, introduce climate adaptation
measures to reduce the physical climate risk of damage to rail
infrastructure and introduce an inclusive training programme
on climate risk assessment and mitigation measures for the
A US$ 35 million (€32.8 million) investment in Georgia’s railway sector. Women employees will take up 40 per cent of
healthcare sector to finance the upgrade of 15 hospitals will the training positions.
be accompanied by technical cooperation, supported by South
Korea. It will develop training to address critical skills gaps in the
sector via the development of a new internally certified training
programme on in-hospital respiratory
SDGs care.
are placeholders

24 EBRD Annual Review 2022


Microfinance loan supports women-led Bosnian firms, Women in Business pilot, climate transition plan launched in Jordan
greener buildings

The Bank piloted its Women in Business programme in Jordan,


providing advice and training for women entrepreneurs and
US$ 10 million (€9.4 million) in financing via Bank al Etihad.
In a linked financing, Bank al Etihad committed to develop an
A €2.5 million package to Mi-Bospo, a micro-credit institution in institutional climate transition plan. This was the first EBRD
Bosnia and Herzegovina, supports sub-loans with a specific focus project in the financial sector to incorporate its Paris alignment
on firms run by women and active in the agribusiness sector, as methodology for transition planning.
well as investments in high-performance green technologies,
materials and solutions in the private residential sector.

Western Balkans Youth in Business programme launched in Kosovo

The EBRD extended its Youth in Business programme to


the Western Balkans with a project in Kosovo aimed at
entrepreneurs under the age of 35. A €4.5 million loan to Banka
për Biznes will be on-lent to young entrepreneurs. The regional
programme, backed by Sweden, aims to provide €100 million to
local banks in the six Western Balkan countries.

25 EBRD Annual Review 2022


Digital
• In January 2022, the EBRD establishes a
In 2022, the EBRD made significant
Digital Hub to mainstream and coordinate progress on promoting the digital transition,
digital activities its ambitious initiative to narrow the
• Digital Approach formally launched to
technological gap between the EBRD regions
shareholders at 2022 Annual Meeting and other economies.
• Three-pronged Digital Approach establishes the The Bank launched the operational phase of its new Digital
Approach with a formal unveiling to shareholders at the Annual
foundations for digital transition and supports
Meeting in Marrakech in May 2022.
digital adaptation and innovation
At the start of the year, the Bank had already established a Digital
• Digital Hub working on cybersecurity toolkit in Hub, creating a team of dedicated digital specialists to mainstream
response to the rise in cybercrime and coordinate activities throughout the EBRD’s operations.

26 EBRD Annual Review 2022


Stepping up progress on delivering
the digital transition
A centre of digital excellence, the hub supports teams already It is helping organisations to adapt to the new technological
involved in digital projects, helps embed digital activities in other challenge by providing access to finance and knowledge transfer
areas of EBRD activity and seeks out new opportunities for the through technical and advisory services that support the
Bank and its regions across the digital spectrum. digitalisation of services, assets, business processes and value
chains.
It is also taking the lead on external engagement and outreach,
making cooperation and partnership with other international It is promoting innovation to support a start-up-friendly ecosystem
financial institutions a key priority and setting out ways to ensure and enable companies to grow in a safe space, as well as meeting
that digital transformation supports the EBRD’s transition specific financing needs, where appropriate, through debt
mandate, establishing the impact pathways for the digital financing and direct and indirect equity investments.
components of EBRD investments.
As part of the EBRD’s digitalisation drive, the Bank launched
The new digital initiative, a key element in the EBRD’s Strategic the Venture Capital Investment Programme III (VCIP III), a
and Capital Framework 2021-25, is a three-pronged approach €250 million investment facility dedicated to supporting early
aimed at establishing the foundations for digital transformation and growth-stage technology companies.
in EBRD investee economies, promoting adaptation among
In 2022, VCIP III invested in five new companies in four countries
clients and governments and supporting innovation through new
– Bulgaria, the Czech Republic, Hungary and Türkiye – three
entrants across markets.
of which are new to VCIP. The investee companies operate in
With the operational approach underway, the Bank rolled out innovative sectors, such as artificial intelligence (AI)-based
projects across all three component areas of the digital approach, building-access control, AI-based supply chain and inventory
using the full gamut of instruments at its disposal: investments, optimisation, computer-aided design, metadata management and
policy dialogue and advisory services. next-generation document editing.
To lay the foundations of a sustainable and inclusive digital In addition, in response to the growth of cybercrime, the Digital
economy, the EBRD is promoting appropriate policies and Hub is designing a cybersecurity toolkit to help clients assess
regulation, access to connectivity through the creation of their cyber maturity and management systems, advising on
infrastructure, and a skilled workforce. cybersecurity action plans and training them through awareness-
raising programmes and IT personnel upskilling.
The EU made an important contribution to the Bank’s support
for the digital transition across its regions, providing guarantees
worth up to €35 million to back investments to promote
digitalisation, including high-quality and reliable broadband
services.
The Korean Technical Assistance and Cooperation Fund and Israel
also lent technical support for digital development across the Bank,
enabling the hub to develop initiatives for assessing the digital gaps
in the activities of EBRD clients and supporting the implementation
of digital transformation and cybersecurity measures.

27 EBRD Annual Review 2022


Digital case studies
Boosting digital connectivity and greening communications in Sustainable metal-mining loan supports digital training in Albania
Armenia

A US$ 20 million (€18.7 million) loan to Armenian telecoms


company Telecom Armenia will increase digital connectivity and
competitiveness and make Armenian communications more
energy efficient. The project involves an expansion of the 4G
network and the rollout of high-speed fibre to homes in the capital
Yerevan, secondary cities and rural areas.

Advancing digitalisation in Greece with financing for telecoms group A loan to finance the purchase of Albanian metal-mining group
AlbChrome by Turkish group Yildrim Holding will promote digital
skills for workers in plants in underserved regions of the country
through a training programme mainly for older staff. The project
also supports AlbChrome’s development of a roadmap for
effective climate action.

Promoting access to digital skills in Türkiye’s automotive sector

The EBRD’s first funding under the EU’s Recovery and


Resilience Plan for Greece is improving regional internet access.
A €150 million financing package will contribute to Greek
telecom operator OTE’s rollout of fibre-to-the-home broadband
infrastructure to approximately 371,000 households and
businesses in 12 regions outside Greece’s major cities.

Backing Croatia’s first sustainability-linked bond

The EBRD backed Croatia’s first sustainability-linked bond, an The EBRD’s participation in an ESG-linked debt issue by French
issue by business-process outsourcing provider Meritus ulaganja automotive technology group Faurecia will promote access to
d.d. to support the expansion of its geographical footprint and digital and automation skills training for its workers in Türkiye to
service offering, including the further development of robotic and meet demand for more technologically sophisticated production
AI digital channels. The group is also committing to green and lines. It will also support the group’s decarbonisation and
sustainable growth, with goals to cut greenhouse gas emissions e-mobility targets in the Czech Republic, Poland and the Slovak
and increase women's participation in management roles. Republic.

28 EBRD Annual Review 2022


EBRD, EU and GIZ support SME digitalisation in Bosnia and Aiding digital innovation, economic resilience and inclusion in
Herzegovina Ukraine and Moldova

A commitment of up to US$ 40 million (€37.5 million) to


an equity fund managed by Horizon Capital aims to raise
the resilience of financial markets in Ukraine and Moldova,
increasing private equity and supporting Ukrainian and
Moldovan firms affected by the crisis, especially tech and export-
The EBRD and the EU launched Go Digital in Bosnia and oriented SMEs. Horizon will also seek to promote inclusive and
Herzegovina, a programme intermediated through local banks diverse workforces in the fund’s portfolio.
to help SMEs invest in digitalisation and improve productivity,
efficiency and resilience. Germany’s Gesellschaft für
Internationale Zusammenarbeit is supporting the programme
by developing digital innovation hubs.
Advancing digital development at Turkish fintech firm

Digital Approach project in Poland makes SMEs more competitive

An equity investment in Param and Kredim, units of Türkiye’s


leading fintech company, Param Group, boosted Param’s
competitiveness by supporting operational changes and the
launch of new products and enabled Kredim to launch a buy-
now-pay-later service. The funding underpinned Param Group’s
goal of providing digital and open banking services in the near
future.

The EBRD’s first Polish project under the Digital Approach was a
€5 million loan to fintech factoring company PragmaGO, helping
it to increase its offering of cost-efficient financing tools for SMEs.
It also helped PragmaGO to embed its financial offering into the
business-to-business (B2B) online selling platforms of prominent
partners with a critical mass of users, such as Polish e-commerce
company Allegro.

29 EBRD Annual Review 2022


Abbreviations
ABI Annual Bank Investment (see footnote 4)
AI Artificial intelligence
CA Central Asia
CEB Central Europe and the Baltic states
EBRD European Bank for Reconstruction and Development
EEC Eastern Europe and the Caucasus
EU European Union
GBVH Gender-based violence and harassment
GECA Gender Equality in Climate Action
GEFF Green Economy Financing Facility
GET Green Economy Transition
GW Gigawatt
MW Megawatt
NWFE Nexus on Water, Food and Energy (Egypt)
ODC Office des Céréales (Tunisia)
SCF Strategic and Capital Framework
SDG Sustainable Development Goal
SEE South-eastern Europe
SEMED Southern and eastern Mediterranean
SME Small and medium-sized enterprise
TFP Trade Facilitation Programme
URA Ukraine Reforms Architecture
VCIP III Venture Capital Investment Programme III
WiB Women in Business

Exchange rates
Non-euro currencies have been converted, where appropriate, into euros
based on the exchange rates current on 31 December 2022 (approximate
euro exchange rate: US$ 1.0677).

30 EBRD Annual Review 2022


Visit ar-ebrd.com and www.ebrd.com for
details of our projects and more on the
places and people who benefit from them.
EBRD Annual Meeting 2024
EBRD Annual Meetings bring together
government representatives, business
people, policymakers, academics and
opinion leaders. Join us for the Bank's
Annual Meeting and Business Forum 2024,
which will take place in Yerevan, Armenia.

31 EBRD Annual Review 2022


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1520 Annual Review 2022 (E/100)

32 EBRD Annual Review 2022


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