LONDON, (Reuters) – The European Bank for Reconstruction and Development said Thursday that it would increase investments in Ukraine and the surrounding countries following pledges from donors of nearly 1 billion euros ($1.04 trillion).

On Tuesday, the lender stated that 1 Billion Euros would be spent in Ukraine by 2022.

Odile Renaud Basso, President of EBRD, stated that donors have earmarked additional funds to help with the war, at Wednesday’s board meeting.

Russia’s February 24 invasion of Ukraine is predicted to lead to a significant economic contraction and impact on the global and regional economies.

Renaud Basso, a journalist said that Ukraine’s war and the way to respond were at the center of their discussion.

“We will utilize this money together with our own funds in support of infrastructures, companies and countries in Ukraine”

Valdis Dombrovskis, European Union Trade Commissioner Valdis Dombrovskis, estimated that the costs of war damages to Ukraine were between 500 billion billion and 600 trillion euros.

EBRD’s Governors met and decided that they would start operation in sub-Saharan Africa. Renaud Basso did not discuss the details of which countries were first eligible for investment or the amount the lender planned to spend.

She said that “This does not mean we will start activities there yet” and added, “We will continue to take further steps.” “For the moment, we are focusing our attention on Ukraine. Once our board of governors makes further decisions regarding sub-Saharan Africa or Iraq, then we will make our return.

To receive any bank financing, countries will need to join the EBRD.

Under former President Suma Chakrabarti’s leadership, the lender began to discuss sub-Saharan Africa expansion around four years ago. However, progress has been slow. Renaud Basso was named the bank’s president in November 2020.

The EBRD includes 40 countries, ranging from Mongolia to Slovenia to Tunisia.

Renaud Basso indicated that the bank would prioritize energy and food security as Russia’s invasion of Ukraine is having long-lasting consequences. This pressure will affect all its members.

She refused to confirm whether Russia will be removed from the bank’s list of members, as the EBRD had closed down its Moscow-Minsk offices in March.

“It’s a political choice from shareholders, and not a question of the EBRD,” she said.

($1 = 0.9589 euros)