Main points
- The EBRD, together with Privatbank and Raiffeisen Bank, is launching a mechanism to compensate businesses affected by the war.
- The mechanism allows for partial debt write-off for loans for capital investments in fixed assets.
Compensation to Ukrainian businesses / Photo Shutterstock
Ukrainian businesses that suffered from Russia's military aggression will be able to receive partial compensation. A corresponding project is currently being launched.
What is known about compensation for businesses?
The European Bank for Reconstruction and Development is cooperating with Privatbank and Raiffeisen Bank within the framework of a new mechanism to support Ukrainian businesses and households, as stated on the EBRD website.
The mechanism, called Enterprise Security Enhancement (ESE), will allow banks to provide partial debt forgiveness to Ukrainian borrowers. But only to those whose property was damaged as a result of the war.
ESE is part of the Risk Sharing Programs (PRS). That is, if assets purchased with loan funds under the PRS are damaged as a result of war, partner banks will be able to partially write off the loan debt . And the EBRD will already compensate banks for part of the loan losses.
Under normal circumstances, companies in Ukraine still have to repay their loans in full, even in the event of devastation. In particular, the lack of war risk insurance is holding back investment.
The program will cover loans for capital investments in fixed assets. Each application will be reviewed by the bank and the EBRD.
Please note! Only direct war damage is taken into account.
At the same time, the mechanism does not cover working capital. Moreover, strict rules are in place to avoid double compensation if the borrower has already received reimbursement from other sources.
And, according to the information, minimum loss thresholds and compensation limits will apply.
Scope of the pilot project:
- for PrivatBank – 6.8 million euros;
- for Raiffeisen Bank – 1.2 million euros.
This is an EBRD pilot project created to address a critical wartime problem – the lack of financial instruments for businesses,
– the test says.
Please note: No further details regarding application submissions or other information have been published.
What do they say at Privatbank?
The pilot launch of ESE is being implemented within the framework of the EBRD's portfolio risk sharing programs with PrivatBank, approved in 2025. This was reported on the bank's website.
PrivatBank CEO Mikael Björknert said that such a mechanism would allow businesses to continue operating and reinvest funds.
He added that due to the full-scale war, entrepreneurs are working in extremely difficult conditions of shelling and destruction of property.
But despite this, companies continue to invest in recovery,
– Björknert noted.
Interesting! Last year, 40% of loan applications at Privatbank were loans for investment purposes.
What else is worth knowing about compensation for businesses in Ukraine?
Recall that the “Tochka Opory” initiative has appeared in Ukraine. Yulia Svirydenko reported that the government will help employers preserve jobs during the “downtime” period after the Russian shelling.
The program will work for businesses that have been forced to shut down or are recovering from attacks. In particular, employers will be able to receive compensation for part of their employees' salaries during the forced break in work.
In addition, since April, business and government representatives can submit claims to the International Damage Registry. The categories include damage or destruction of critical and non-critical infrastructure, as well as damage, destruction or loss of assets.
You can apply through “Diya”. This is available to all legal entities.