About IFC
International Finance Corporation, a member of the World Bank Group, focuses on private sector development in developing countries. IFC provides investment, advisory, and asset management services to encourage private sector growth and reduce poverty. By offering financial products such as loans, equity investments, and guarantees, the IFC helps businesses and industries expand, create jobs, and improve their economic impact. The organization works with a wide range of sectors, including infrastructure, manufacturing, agribusiness, and services, aiming to promote sustainable and inclusive development worldwide.
Ukraine Framework
IFC provides investment, advice and asset management - offerings that are mutually reinforcing and can be tailored to a client’s specific needs. In the 2023 fiscal year, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to improve people’s lives as economies grapple with the impacts of global compounding crises.
As part of the broader World Bank Group’s response to Russia's invasion of Ukraine, in December 2022 IFC launched a $2 billion package to support the Ukrainian private sector. While initially focusing on short-term support like guarantees and liquidity, IFC is now shifting towards longer-term financing, including capital investment in key areas such as food production, construction materials, energy, shipping, and digital infrastructure.
The Economic Resilience Action (ERA) framework for IFC to address the private sector financing needs during Russia's invasion of Ukraine and prepare for the reconstruction phase:
Phase 1: Resilience During Russia's Invasion of Ukraine
Critical Sectors and Supplies
• Preservation of businesses via access to risk and working capital
• Trade finance for critical goods
• Food security and agribusiness
IDPs and Affected Municipalities
• Access to finance for refugees
• Municipal infrastructure and housing
Vital Economic Infrastructure
• Transport and logistics at the EU border
• Emergency energy security
• Critical telecom infrastructure
Investment Support: Focus on Short-Term Instruments and Very Selective Long-Term Financing:
• Predominantly guarantees, working capital across sectors, risk-sharing facilities with financial intermediaries
• Capex support for business relocation and critical infrastructure repairs / expansion
Advisory and Upstream Support: Emergency Response and Preparation for Reconstruction
• Agribusiness: Adjusting business models and finding alternative routes for exports, farmer recovery and financing programs
• Infrastructure Finance: PPPs and project development facilities
• Financial Sector: Access to finance for refugees, NPL resolution and upstream work on banking and corporate sector restructuring
Phase 2: Reconstruction and Recovery
Critical Sectors Revival
• Recapitalization of banks
• Agribusiness
• Tech/IT
• Distressed asset resolution
Infrastructure Rebuild
• Cities and housing
• Transport and logistics
• Energy transition and security
• Digital infrastructure
Under the proposed platform IFC will predominantly focus financing on resilience - it will also grow its upstream and advisory program to support reconstruction, in close coordination with the World Bank.
IFC, EBRD, EU, and France Help Deliver Largest FDI in Ukraine Since Invasion
The IFC, EBRD, EU, and France have enabled a landmark investment of $435 million into Ukraine's telecom sector, representing the largest foreign direct investment (FDI) since the Russian full-scale invasion. This initiative is called to support a landmark project involving two leading Ukrainian telecom companies, lifecell LLC and Datagroup-Volia, who recently merged to form a new group, Datagroup-Volia-lifecell. The investment will support the merged group in enhancing Ukraine's digital infrastructure, supporting faster and more resilient telecom services for 10 million mobile and 4 million broadband users. The investment will improve network security, expand connectivity, and encourage further private investment in Ukraine’s economic recovery.
Link to website
Ukraine | International Finance Corporation (IFC)
Sources
Financial Sector Resilience
IFC is working closely with the National Bank of Ukraine (NBU) to stabilize the financial system and improve long-term resilience: Supporting digital financial services and innovation. Assisting in the management and resolution of non-performing loans (NPLs). Improving access to finance for Ukrainian SMEs and entrepreneurs.
Impact and Financial Commitments (February 2025)
As of February 2025, IFC has: Committed $2.2 billion in total support for Ukraine’s private sector. Mobilized $760 million in additional financing from donor partners and private investors. Prioritized resilience, sustainability, and inclusive growth as pillars of its Ukraine strategy.
SME and Midcap Financing
With Raiffeisen Bank Ukraine: Joint $210 million SME-focused risk-sharing facility, supported by DFC and other partners.
SME and Midcap Financing
With UKRSIBBANK: IFC is scaling access to finance for larger Ukrainian firms and exporters in sectors such as food processing and green manufacturing.
Renewable Energy Projects
In early 2025, IFC committed to co-finance a €157 million wind energy project in Ukraine, supporting: Construction and operation of modern wind farms. Ukraine’s shift toward renewable energy and reduction of fossil fuel dependency. Increased energy independence in wartime.
Telecommunications Investment
In October 2024, IFC and the European Bank for Reconstruction and Development (EBRD) announced a $435 million joint investment to support the merger of Ukrainian telecom firms Datagroup-Volia and Lifecell. This project enhances digital connectivity and internet access across Ukraine. Aims to modernize infrastructure and improve resiliency amid wartime disruptions.
Better Futures Program
In collaboration with the European Commission, the Better Futures Program blends EU financial resources with IFC's de-risking tools to support private investment in fragile and conflict-affected environments like Ukraine. The program combines financial guarantees, technical assistance, and capacity building for Ukrainian enterprises. It emphasizes green recovery, inclusive growth, and regional integration.
Economic Resilience Action (ERA) Program
Launched in December 2022, the ERA Program is a $2 billion financing package designed to rapidly mobilize private capital and de-risk critical investments in Ukraine’s economy. The initiative targets key sectors such as agribusiness, infrastructure, manufacturing, and digital connectivity. The ERA program provides loans, equity investments, and guarantees to catalyze private sector activity during and after the conflict.
$210 Million Risk-Sharing Facility for Ukrainian SMEs
DFC partnered with the International Finance Corporation (IFC) and Raiffeisen Bank Ukraine to establish a $210 million risk-sharing facility aimed at supporting small and medium-sized enterprises (SMEs) in Ukraine. This facility enables increased lending to Ukrainian businesses that are vital to local economies and recovery efforts but face difficulty accessing capital due to the war. By sharing credit risk with Raiffeisen Bank, the initiative helps maintain and expand financing for companies that create jobs and drive economic resilience.
