The European Bank for Reconstruction and Development will assist with the relocation of Ukrainian small and medium-sized enterprises (SMEs) from the areas most affected by Russia’s invasion. With €2.4 million in support from Switzerland and the United States of America through the EBRD’s Small Business Impact Fund, enterprises that have relocated to safer regions will have their costs reimbursed.
Russia’s war on Ukraine is having a devastating impact on SMEs, especially on those located in the eastern, northern and southern regions of the country. Businesses have been forced to relocate to the more secure western regions of Ukraine to protect employees, save equipment and restart operations.
SMEs are key contributors to job and value creation in Ukraine, accounting for around 82 per cent of employment and 64 per cent of value added as a share of GDP, according to the Organisation for Economic Co-operation and Development. According to Advanter Group, companies lost US$ 64-85 billion in destroyed assets and disrupted markets in the first 75 days of the war alone.
Around 80 Ukrainian companies will receive up to €30,000 each in reimbursed expenses, that have not been previously reimbursed by other organisations, including for:
– the transportation of equipment, raw materials and products
– equipment packing, dismantling, calibration, reparation, rent, leasing and purchasing
– premises: up to one month’s rent, engineering or reparation/construction works for equipment storage and production premises.
Companies have to meet the following criteria:
– up to 500 employees
– up to €50 million turnover or a €43 million balance sheet
– at least two years of operational activity
– more than 50 per cent Ukrainian ownership.
The application process is open until 31 January 2023, with submissions available via the following link.
Donors to the EBRD’s Small Business Impact Fund are: the United States of America, Italy, Ireland, South Korea, Luxembourg, Norway, Switzerland, Sweden, Japan and the TaiwanBusiness-EBRD Technical Cooperation Fund.
The Bank has been supporting SMEs in Ukraine since 1997. More than 1,300 companies have received funding from donors.
To date, the EBRD has invested €18.3 billion in Ukraine. In partnership with donors, it has committed €900 million of funding to projects across the country since the Russian invasion in February 2022. The EBRD has undertaken to commit €3 billion of financing to Ukraine in 2022-23 in partnership with international donors.
By Anastasia Dolmatova
