Fuel Price Shock, Ukrainian Investment and Chornobyl Repair – EBRD Vice President on Current Priorities

The EBRD's Middle East package won't affect investments in Ukraine, while the bank meanwhile races to repair Chornobyl's drone-damaged metal sarcophagus, EBRD's VP tells Kyiv Post. Make us preferred on Google Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied EBRD Vice President for Banking Matteo Patrone in an interview with Kyiv Post on the sidelines of the IMF and World Bank Spring Meetings in Washington DC, April 17, 2026. Photo by Iurii Panin / Kyiv Post Content Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Flip Make us preferred on Google The war in the Middle East has not adversely affected the European Bank for Reconstruction and Development’s (EBRD) portfolio, but clients in the conflict zone may need to focus less on capital expenditure and more on working capital, Matteo Patrone, EBRD Vice President for Banking, told Kyiv Post in an interview on the sidelines of the IMF and World Bank Spring Meetings in Washington. The EBRD has prepared a €5 billion ($5.9 billion) response package for the economies of Iraq, Jordan, Lebanon, the West Bank and Gaza, as well as to neighboring economies affected by the Iran war. At the same time, close to $3 billion of annual investments to Ukraine will remain at the same level, with Patrone telling Kyiv Post that the EBRD is very satisfied working with Ukraine’s private sector. Follow our coverage of the war on the @Kyivpost_official . The EBRD actively invests in the scaling of Ukraine’s private sector through direct loans to the largest companies and risk-sharing products in partnership with Ukrainian banks, but it also invests in energy projects. This includes almost €1 billion deployed to Ukraine’s state-owned giant Naftogaz to purchase gas for winter. Indeed, €600 million ($703 million) has been deployed in the first three months of 2026. On top of the Middle East fuel price shock caused by hostilities and blockades in the Strait of Hormuz, the EBRD is busy with another project – the need to raise €500 million ($585 million) to repair damage to the New Safe Confinement at the site of the Chornobyl Nuclear Power Plant, penetrated by a high-explosive Russian drone strike in February 2025. The damage to the roof area was the equivalent in size to 18 parked cars. It is also causing corrosion and, if left unaddressed, could compromise the entire protective system which was carefully maneuvered into position in November 2016. Other Topics of Interest Memories of Pripyat Before 1986 – Conversation With a Former Resident A former Pripyat resident, who later followed in her parents’ footsteps and became a nuclear plant worker, recalled her lost youth and the fading image of a once prosperous city with Kyiv Post. Patrone sat down with Kyiv Post on the sidelines of the 2026 IMF Spring Meetings to discuss whether the Middle East war is impacting EBRD’s clients, why damage to the Chornobyl confinement is causing alarm, and why the bank says it is “humbling” to work with Ukraine’s private sector, and. The interview has been edited for clarity and succinctness. A video of the interview will be published separately. Kyiv Post: Mr. Patrone, tell us about the EBRD’s agenda for the Spring Meetings. Matteo Patrone: We’re meeting a number of clients and partners within our regions of operation. And certainly, Ukraine is one of the priorities for the meetings this week. We have already participated in several events and meetings relating to the resilience Ukraine’s economy Ukrainian during the conflict, along with reconstruction. I believe you have already met with the Ukrainian delegation, is that right? How did it go? It went very well. We met at the Ukraine House during a very interesting event on innovation in Ukraine, which really set the scene for how the reconstruction and recovery of Ukraine’s economy should look like going forward. Plans will hinge on leapfrogging upon technological innovation. What do you think about the drones on display there? It’s quite impressive what Ukrainian human capital can produce, and Skyfall [a Ukrainin miltech company which displayed its drones at the event in Ukraine House] is a very good example. Ukraine's Vampire drone by Skyfall on display at Ukraine House, held alongside the 2026 IMF Spring Meetings in Washington DC (Photo courtesy of Ukraine House/Facebook) How does the EBRD view the effect of the winter strikes and the fuel price shock on Ukraine’s economy? Will it impact your investments in some way? As you know, the energy security agenda has been our foremost priority as part of the package of support to the Ukrainian economy. Out of almost €10 billion ($11.7 billion) invested in Ukraine, more than €3 billion ($3.5 billion) has so far gone to the energy security sector. And last winter was no exception. We supported Naftogaz [Ukraine’s state-owned gas giant] last year, along with Ukrnergo [Ukraine’s state-owned energy giant and state-owned electricity transmission system operator]. This year, we finalized a transaction with Ukrhydroenergo [Ukraine’s largest state-owned hydropower generating company], as well as channeling further grants to Naftogaz. Our focus remains on the short-term resilience of Ukraine’s energy system, but also on the preparation for its longer-term resilience and sustainability. So that means distributed generation and a more diversified energy mix, which includes renewable energy. A number of private sector actors – local entrepreneurs, local investors, as well as foreign direct investors – are participating in that. Matteo Patrone, EBRD vice president for banking (center); Francis Malige, EBRD managing director and head of the Financial Institutions Business Group (third right); and Ukraine’s Prime Minister Yulia Svyrydenko at Ukraine Innovation Days at Ukraine House in Washington, DC, on the sidelines of the 2026 IMF Spring Meetings. (Photo by Ukraine House) Has the global fuel price shock impacted your investment strategy? It’s a bit too early to determine the impact on the economies where the EBRD operates. The positive aspect is that we have not seen a deterioration in our portfolio, at least for now. But the situation remains volatile, and that may have an impact on a few aspects. Firstly, it affects energy security across the board. That has an impact on all those economies where we operate that are net importers of energy. There is also the impact on energy-intensive industries, such as steel, and the agricultural value chain because of the phosphate, fertilizers and sulfur supply chain. The supply chain itself also has issues in terms of logistics. It’s a bit like what happened during COVID in that sense. And many of these economies are based on tourism which is also affected. Because of the jet fuel crisis? Yes, but also the region itself, clearly. Take Jordan for example. It’s a tourist destination and so there is an impact on that sector. Many of these economies, or the economies where we operate, are counting on remittances and those are also affected. So we are watching and monitoring this very closely, talking to our clients and are ready to intervene. We have put in place the final Middle East conflict response package with the initial focus on those countries which are directly impacted and those countries that are close geographically to the epicenter of the crisis. Those obviously include Lebanon, Jordan, Iraq and the West Bank where we operate. But also Turkey, Egypt and the South Caucasus, in particular Armenia and Azerbaijan. We foresee investing about €5 billion ($5.8 billion) in these countries in 2026. Managing Director Kristalina Georgieva delivers the Curtain Raiser speech to mark the start of the Spring Meetings of the International Monetary Fund and the World Bank Group in Washington, DC, April 9, 2026. (Photo courtesy of IMF Photo/Tangyu Zhang). “Energy diversification and the green transition are not a matter of climate change anymore. They are a matter of energy security.” What do your clients say – those who are based there? Well, they are monitoring the situation, and clearly there is a need to reconsider some projects. For instance, those clients considering capital expenditure may be reconsidering that, and they may need working capital and liquidity more urgently now. So our pipeline may be evolving over the coming months. We have seen the same in multiple crises where we have supported our clients, and we stand ready to fine-tune and adapt to the circumstances. In light of this situation, the IMF has repeatedly emphasized during all meetings the need to diversify our energy supplies, including renewables and nuclear. This is something that the EBRD has bet on, because you have also invested in renewables in Ukraine. Has this bet played out? Well, it’s going to play out, definitely. It’s absolutely crucial. Energy diversification and the green transition are not a matter of climate change anymore. Thy are a matter of energy security. And so we’re going to be a key actor in that. We are already, as you mentioned, in Ukraine and in many other places. Egypt, for instance, is a good example. And you mentioned the nuclear sector too. We have not traditionally invested there because investments in the nuclear sector are typically made by the state. And, as you know, we are very much a private-sector-oriented organization. Plus, these projects are huge and require big ticket investment, which is not really compatible with the kind of projects that we do. However, we do have very strong expertise in nuclear safety. And as you know, we have been leading the efforts on the Chornobyl New Safe Confinement. And where we can engage is in relation to nuclear safety aspects of the extension of life of existing nuclear power plants. And we are also obviously watching developments on the small and medium reactors, because those may involve private sector investments. The projects are a bit smaller in size and they can potentially fit our investment strategy. We understand that there is a social need for this kind of energy diversification. But is it possible to earn on it? Are profits and return on investments possible?   Well, absolutely. First of all, it depends on the volatility of the fossil fuel market. When oil is trading at $60 per barrel, that’s one thing. If it goes up to $120 or $130, that’s something else. Technology in the renewable energy sector has improved dramatically over the years, while the cost of producing renewable energy has come down, and so there are a number of considerations related to the financial and economic returns that make the choice of renewable energy a positive one within a well-diversified energy mix. You mentioned Chornobyl. Can you provide any updates on this project after the drone strike in February last year? I’m going to be in Chornobyl at the end of next week [late April]. And for us, this [situation] is of particular concern because there is a risk of increased corrosion of the system, which could compromise it if not dealt with in an appropriate length of time.  And that requires a significant investment. Initial preliminary estimates point to half a billion euros. And we are talking to a number of stakeholders to see whether we can raise that amount of money and create another project in order to fix the issue.  Obviously, there are other competitive priorities in Ukraine and worldwide, but I think this is actually a very important one to take care of. A hole in the cladding of the New Safe Confinement at the Chornobyl Nuclear Power Plant following a Russian drone strike on Feb. 14, 2025. The blast created an opening in the structure that compromises its ability to isolate radioactive waste. (Photo courtesy of the EBRD press service) Can you disclose any details about the €0.5 billion project? Would this be the repair? It’s the repair. But obviously, it’s not an easy environment in which to undertake civil works. And you may remember that the New Safe Confinement was also a very difficult project from a technological standpoint because of the accident in 1986. As of now, the war is also raging, so it’s also more difficult to operate there, and the cost of conducting that operation, which is very delicate, is particularly significant. Are there any stakeholders ready to participate in the actual work? What has been the Ukrainian government’s feedback? I’m in touch with the Ukrainian government. They are very concerned, clearly, and things are fine now. But we don’t want the work that we have conducted over the last several years to be compromised because of a drone attack. The New Safe Confinement structure over the Chornobyl Nuclear Power Plant's destroyed fourth reactor. (Photo courtesy of the EBRD press service) Let’s finish by talking about the EBRD’s plans for Ukraine this year. Which projects form your highest priorities? Have the latest economic developments, including uncertainty due to the war in the Middle East, changed any of your plans? Last year we deployed €2.9 billion ($3.4 billion) on 86 projects, of which 78 were in the private sector. We want to continue that trend – a significant increase on the previous year.  We want to continue supporting the private sector as much as we can, as well as looking after the major state-owned enterprises if there is a need for further support, especially in the energy sector. And we have already invested €600 million ($701 million) in the first three months of this year. So the pipeline is actually pretty promising in that sense.  The Ukrainian economy is vibrant, especially the private sector. We discussed startups, but many established companies are also expanding and exporting. And so it’s promising and an important source of fiscal revenue for the Ukrainian government and that’s how we plan to continue supporting the real economy.  So I think it’s going to be more of the same – energy security and targeted infrastructure development, notably in the regions and at local levels. It’s going to be about the business value chain, the private sector and trade support. EBRD Vice President for Banking Matteo Patrone in an interview with Kyiv Post on the sidelines of the IMF and World Bank Spring Meetings in Washington, April 17, 2026. (Photo by Iurii Panin / Kyiv Post) What is your feedback on working with Ukraine’s private sector and is there anything that makes Ukrainian entrepreneurs unique?  I think it’s humbling working with them. It’s humbling working with entrepreneurs, it’s humbling working with corporates, and it’s also humbling working with our partner financial institutions. A big part of what we do in the SME [small and medium sized enterprises] sector is through our partner financial institutions by providing them either with financing or resharing support. And that allows them to take more risks and deploy capital among SMEs.  When it comes to local entrepreneurs, it’s really inspiring to work with them. And the fact that Ukraine continues resisting is also due to the work of the men and women that work in these companies, at a leadership level, but at all levels of the organization. And it’s really inspiring for all of us to be supporting them and we will continue to do that. Olena Hrazhdan is the Business Reporter at Kyiv Post, covering Ukraine’s markets, business, and economic policy. While she reports broadly on economic issues, her core focus is banking, finance, monetary and fiscal policy. Olena previously wrote for leading Ukrainian business media and became a Fellow of the International Monetary Fund’s Journalism Fellowship in 2024.