By Ahmed Eljechtimi

MARRAKECH in Morocco (Reuters] – A senior bank official revealed that the European Bank for Reconstruction and Development, (EBRD), is currently considering providing financial support to Ukraine’s transport and logistic companies for them to continue their exports.

Ukraine has closed all four ports at the Black Sea and Azov Sea, which Russian forces had captured. This leaves Ukraine with only one export route: land routes via neighbouring countries.

Russia’s Black Sea shipping control means that the country could lose millions of tonnes of its grain exports, which would trigger a global food crisis.

Matteo Patrone, EBRD eastern Europe chief, said that the bank plans to provide a liquidity line for Ukraine’s railway company UZ in order to maintain its operations and allow it to export more Ukrainian goods. He spoke to Reuters during Marrakech’s annual meeting.

He stated that he was working with logistics companies in order to provide support for them regarding liquidity lines.

This initiative also includes the Ukraine’s Post Office and other companies from both private and public sectors as well as local municipalities.

Patrone stated that talks between EBRD’s infrastructure ministry and Ukraine are looking into ways to improve transborder and transhipment infrastructure.

According to a trader, rail can only export about 1% of grain stored in Ukraine’s silos. The rail company will need to adjust its infrastructure and equipment to transborder grain shipment.

Patrone stated that the Bank is still in the initial stages of negotiating liquidity lines for Ukraine to assist its neighbours with Russia’s stoppage in gas supplies.

Patrone stated that they are currently in discussions with Naftogas about the possibility of providing a liquidity line for them.

According to the EBRD, it plans to invest 1 billion euro ($1.04 billion), in order to support Ukraine’s economy by 2022.

Valdis Dombrovskis (EU Commissioner for Trade) estimated the damage caused by war to Ukraine at 500 billion to 600 billion Euros.

($1 = 0.9637 euros)