EBRD and Raiffeisen Bank Ukraine launches Enterprise Security Enhancement in Ukraine

The European Bank for Reconstruction and Development (EBRD) is partnering with Raiffeisen Bank Ukraine on a new support mechanism for Ukrainian businesses and households affected by Russia’s ongoing war on Ukraine. The EBRD and Raiffeisen Bank Ukraine are piloting a new Enterprise Security Enhancement (ESE) feature as part of the portfolio risk sharing facilities between the institutions. The donor-funded feature embedded in the facilities will enable Raiffeisen Bank Ukraine to grant partial debt relief to Ukrainian borrowers who have suffered war-related damage. The instrument is the first of its kind piloted by the EBRD  and is designed to address a critical wartime gap in business finance.

ESE introduces a structured mechanism that allows EBRD partner financial institutions to grant partial debt relief to eligible sub-borrowers when the assets financed by the sub-loans covered by the EBRD’s portfolio-risk-sharing facility subsequently suffer direct, verified war damage. The EBRD, via donor support, will compensate the partner banks for the resulting credit loss, allowing Ukrainian businesses to continue operating and reinvesting rather than carrying the full residual liability of destroyed assets.

Under standard lending arrangements, Ukrainian businesses remain fully liable for repayment of their loans even when the productive assets financed by those loans are destroyed by the war. With limited availability of war-risk insurance, this misalignment has discouraged the capital investment that Ukraine's economy needs to sustain operations, preserve jobs, and rebuild. The ESE thus preserves the incentive for Ukrainian businesses and households to invest in long-term capex projects, despite continued wartime uncertainty, sustaining livelihoods and supporting Ukraine’s economic resilience. It works alongside — but does not duplicate — existing market and donor-backed insurance mechanisms, with strict anti-double-compensation rules ensuring that it is used only where no other recovery is available.

ESE is available exclusively for capital investment (capex) sub-loans financing fixed assets that subsequently suffer direct war-related damage. Each ESE claim will be reviewed and verified by the EBRD’s partner financial institutions in cooperation with the EBRD (or its appointed consultants) before any compensatory payment is made. ESE does not cover working capital, and minimum damage thresholds and aggregate per-project caps will apply to ensure the mechanism remains targeted and fiscally disciplined.

The ESE pilot is launched under the Bank’s portfolio risk-sharing facilities with Raiffeisen Bank Ukraine, approved in 2025. The scope of the funds allocated to finance ESE-mechanism for Raiffeisen Bank Ukraine is EUR 1.2 million.

Natalia Gurina, CEO of Raiffeisen Bank Ukraine, emphasized:

“For Raiffeisen Bank, it is fundamentally important to remain a stable pillar of support for Ukrainian businesses amid the full-scale war. We highly value the EBRD’s willingness to introduce innovative and effective instruments to support businesses in Ukraine. The launch of the Enterprise Security Enhancement mechanism together with the EBRD is a response to the unprecedented risks our clients face during the war, including regular attacks on civilian and critical infrastructure. This instrument will help support businesses that continue investing in their development despite the war, while enabling companies to recover faster and ensure business continuity".

Ruslan Spivak, Head of Institutional Clients, Investment Banking and Corporate Strategy Division at Raiffeisen Bank Ukraine, added:

“Strengthening our strategic partnership with the EBRD and supporting the resilience of Ukrainian businesses remains one of our key priorities.  We believe the Enterprise Security Enhancement mechanism addresses a critical gap in wartime finance by helping businesses continue investing and rebuilding despite the elevated security risks created by the war.

We are proud to be among the first financial institutions participating in this initiative and are confident that, together with the EBRD, we can provide Ukrainian companies with additional capacity to maintain operations, preserve economic activity and support future recovery”.

The pilot ESE allocations are funded by the EBRD Shareholder Special Fund. As ESE is rolled out beyond the pilot phase to additional Ukrainian PFIs and PRS facilities, future ESE allocations are expected to be funded by external donors — including the European Commission under the Ukraine Investment Framework (UIF).

Raiffeisen Bank Ukraine is the largest private bank in Ukraine, and the fourth largest overall. The bank has over 250 branches, servicing 2.52 million active clients offering conventional banking products to corporate, SME and retail customers. The EBRD has had a longstanding and successful relationship with RBU since 1998.

The EBRD is Ukraine’s largest institutional investor, having substantially increased its investment in the country since Russia launched a full-scale invasion in 2022. Since the start of the war, the Bank has deployed 9.7 billion euros to support the real economy, with a focus on energy security, private-sector resilience and critical infrastructure.