EBRD invests $25 million in an industrial park in Lviv

The European Bank for Reconstruction and Development will become the owner of 35% of the shares of the Lviv industrial park M10 and will invest $24.5 million in it.

It is reported press service EBRD.

The bank notes that Russia’s full-scale war against Ukraine has led to the closure of logistical routes to and from Ukraine, as well as within the country. Uncertainty about sea routes for imports and exports adds importance to overland routes to and from the EU through Western Ukraine, as well as storage capacity for goods.

Therefore, the EBRD decided to invest in the Lviv industrial park M10, which is being developed by Dragon Capital Tomasz Fiala (owns the publication “Ukrainian Pravda”). M10 is located 60 km from the Ukrainian-Polish border and “will provide new industrial and logistical storage facilities necessary to ensure sustainable humanitarian and economic activity in Ukraine both during the war and during the post-war reconstruction period,” the EBRD says.

The total amount of investments is up to 24.5 million dollars in a project with a total cost of 70 million dollars. Of these, up to 5.5 million dollars will be invested in the completion of the first stage of the project. The implementation of Phase 1, interrupted by the full-scale Russian invasion of Ukraine in February, resumed in the summer of 2022, and the completion of the first warehouse complex with an area of ​​14,400 square meters is expected in the second half of 2023.

“The EBRD’s investment in the Lviv Industrial Park fills the funding shortfall caused by the unfavorable market conditions and corresponds to the Bank’s position on Ukraine and its overall response to the crisis,” the bank added.

In October, EBRD President Odile Renaud-Basso pledged that the EBRD would provide up to €3 billion in 2022-23 to help Ukrainian businesses and the economy continue to function. In 2022, the EBRD directed 1.7 billion euros to Ukraine and mobilized another 200 million euros through partner banks.