One of the largest financial agreements announced at the Ukraine Recovery Conference 2026 in Gdańsk was the launch of a new risk-sharing mechanism between PrivatBank and the European Bank for Reconstruction and Development (EBRD).
This is a record-breaking risk-sharing agreement for the Ukrainian market from the EBRD with a total volume of €825 million, under which the parties have signed the allocation of the first tranche of €265 million.
The new instrument provides that the EBRD will assume part of the credit risk on new loans issued by PrivatBank to Ukrainian companies. This mechanism will enable the state-owned bank to significantly expand lending even amid wartime uncertainty and business risks.
This transaction is made possible thanks to the valuable contributions of the European Union under the EU’s Ukraine Investment Framework, as well as support from the EBRD’s Crisis Response Special Fund (CRSF).
“The signing of this record EBRD risk-sharing agreement at the Ukraine Recovery Conference will allow us to expand lending and more actively finance priority sectors of the economy. We highly value the EBRD’s support for Ukrainian businesses, which demonstrates the readiness of international financial institutions to move from emergency assistance to large-scale investment mechanisms that will ensure the long-term recovery and modernization of the economy. Over the past years, this cooperation has already provided businesses with access to more than €1 billion in financing. In addition, the new facility will work effectively with the Enterprise Security Enhancement program, which we launched jointly with the EBRD. This means that if property purchased on credit under the PrivatBank and EBRD programs is damaged due to the war, the client will be able to receive partial compensation for the losses,” said Mikael Björknert, Chairman of the Management Board of PrivatBank.
The program consists of two major components:
- €692 million will be allocated under the EBRD’s Resilience and Livelihoods Framework (RLF). These funds will support working capital and investment needs of Ukrainian companies that continue operating and investing despite the war.
- An additional €133 million will be provided through the EU4Business–EBRD credit line for micro, small, and medium-sized enterprises (MSMEs). This segment forms the backbone of economic resilience in many regions of Ukraine and is a key source of employment.
A special focus will be placed on helping businesses modernize in line with European Union standards. At least 70% of the new loan portfolio under the EU4Business–EBRD credit line will be directed toward projects supporting the green transition, including energy efficiency, renewable energy, industrial modernization, and emissions reduction.
Importantly, the support will not be limited to lending. Some companies will also be eligible for investment incentives in the form of grants funded by the European Union under the EU’s Ukraine Investment Framework. Priority will be given to businesses affected by the war, as well as companies promoting social inclusion by employing veterans, internally displaced persons, and people with disabilities, as well as women- and youth-led businesses, small farms, start-ups, micro enterprises, companies supporting humanitarian demining activities and other priority categories under the the EU4Business–EBRD credit line.
Additional investment incentives of up to 30% of the financed amount will be made available to businesses that have suffered direct war-related damage or destruction, as well as to businesses owned and/or led by war veterans, or those employing and/or serving war veterans to a significant extent.
For the background
In May, EBRD and PrivatBank launched a unique new mechanism designed to support Ukrainian businesses. This new donor-funded instrument — Enterprise Security Enhancement (ESE) mechanism will allow eligible borrowers to receive partial debt relief if assets financed through investment loans suffer direct war damage.
