EBRD to help Ukraine find an exit for its exports

div classBodysc17zpet90 cdBBJodivpBy Ahmed Eljechtimip

pMARRAKECH, Morocco Reuters – The European Bank for Reconstruction and Development EBRD is considering financial support for Ukraines transport and logistics companies to help them maintain their exports, a senior bank official said on Thursday.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pUkraine last week formally closed its four Black Sea and Azov Sea ports, which Russian forces have captured, leaving land routes through neighbouring countries as its only export option.p

pIt consequently risks losing millions of tonnes of grain exports due to Russias control of Black Sea shipping, triggering a food crisis and inflationary pressure on global food commodities markets.p

pThe EBRD plans to offer a liquidity line to Ukraine‘s rail company UZ to keep it running and prepare it to export more Ukrainian goods, EBRD’s eastern Europe head Matteo Patrone told Reuters at the banks annual meetings in Marrakech. p

p“We are working with logistics companies to see how to support them on liquidity lines,” he said.p

pThe initiative includes Ukraines post office and other companies in the private and public sectors, as well as municipalities, he added.p

pTalks between EBRD and Ukraines infrastructure ministry are looking at ways to upgrade transborder and transhipment infrastructure, Patrone said. p

pA trader said rail could only export a fraction of the grain currently stored in Ukraines silos, with the rail company needing to adapt its infrastructure and equipment for transborder grain shipments. p

pThe Bank is also in the early stages of negotiating liquidity lines to help Ukraine‘s neighbouring countries deal with Russia’s gas supply halt, Patrone said, without giving details.p

p“We are also discussing with Naftogas the provision of a liquidity line to them,” Patrone said. p

pThe EBRD has said it intends to spend 1 billion euros 1.04 billion in 2022 to help the Ukrainian economy.p

pEuropean Union Commissioner for Trade Valdis Dombrovskis estimated the cost of war damage to Ukraine at between 500 billion and 600 billion euros.p

p1 0.9637 eurosp

p

pp Reporting by Ahmed Eljechtimi Editing by Richard Changp

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