In the wake of dwindling international support for Ukraine's war effort, the European Bank for Reconstruction (EBRD) is planning a capital increase. The London-based institution is working towards raising an additional €5 billion ($5.8 billion) by the end of the year, according to EBRD President Odile Renaud-Basso on Monday.
The proposed capital raise is aimed at enhancing EBRD's annual investment in Ukraine. The bank plans to increase its yearly investment from €1 billion pre-war to €1.5 billion ($1.6 billion). This move comes at a critical time as international backing for Ukraine's war effort has waned significantly.
In recent developments, US lawmakers have scrapped a $6 billion aid package intended for Kyiv. Additionally, Slovakia, a neighboring country, elected an anti-military aid leader, further challenging Ukraine's efforts to secure financial support for its war effort.
Meanwhile, the World Bank has revised its estimate for Ukraine's recovery cost upwards. The new figure stands at $411 billion, which is more than double the country's projected 2022 Gross Domestic Product (GDP). This revision indicates the significant economic impact of the ongoing conflict on Ukraine and underscores the importance of financial aid and increased investment.
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