European Bank for Reconstruction and Development


European Bank for Reconstruction and Development
TypeInternational financial institution
Industryinternational governmental or non-governmental organizations Edit this on Wikidata
Founded1991; 30 years ago (1991)
HeadquartersLondon, EC2
United Kingdom
Key people
Odile Renaud-Basso (President)
Jacques Attali (First president)
US$1.1 billion (2016)[1]
Total assetsUS$59.15 billion (2016)[1]
Total equityUS$16.27 billion (2016)[1]
Number of employees

The European Bank for Reconstruction and Development (EBRD) is an international financial institution founded in 1991. As a multilateral developmental investment bank, the EBRD uses investment as a tool to build market economies. Initially focused on the countries of the former Eastern Bloc it expanded to support development in more than 30 countries from Central Europe to Central Asia. Similar to other multilateral development banks, the EBRD has members from all over the world (North America, Africa, Asia and Australia, see below), with the biggest shareholder being the United States, but only lends regionally in its countries of operations. Headquartered in London, the EBRD is owned by 71 countries and two EU institutions, the 71st being Algeria since October 2021. Despite its public sector shareholders, it invests in private enterprises, together with commercial partners.

The EBRD is not to be confused with the European Investment Bank (EIB), which is owned by EU member states and is used to support EU policy. EBRD is also distinct from the Council of Europe Development Bank (CEB).


The EBRD was founded in April 1991 during the dissolution of the Soviet Union by representatives of 40 nations from 3 continents and two European institutions, the European Investment Bank (EIB) and the European Economic Community (EEC, now European Union – EU), after reaching an agreement on the bank's charter, size, and distribution of power among shareholders.[3]

Environmental sustainability

The EBRD is unique among development banks for two reasons. First, it was the first multilateral development bank to have an explicit environmental mandate in its charter (since 1995),[4] and second, in that it will not finance thermal coal mining and coal-fired electricity generation due to their environmental impact.[5][6][7]

The following table shows the development of investment volume into the Green Economy Transition (GET) approach, in support of the Paris climate goals.

Year Total investment GET investment Ratio Source
2016 9.4 billion EUR 2.9 billion EUR 31 % [8]
2017 9.7 billion EUR 4.1 billion EUR 43 % [9]
2018 9.5 billion EUR 3.3 billion EUR 36 % [10]
2019 10.1 billion EUR 4.6 billion EUR 46 % [11]

The EBRD had pledged, prior to 2015 Paris Agreement, to dedicate above 40 per cent of its financing to green investment by 2020. This goal was accomplished for the first time in 2017.[12] With Russia actually being the biggest donor to an NDEP Support Fund for the environments inside the bank, with total contributions amounting to €60 million. €5 million was donated by Russia in the same year of 2015.[13]


The EBRD was founded to support countries of the former Eastern Bloc in the process of establishing their private sectors.[14] To that end, it offers "project financing" for banks, industries and businesses, for new ventures or existing companies. It works with publicly owned companies to support their privatisation, as advocated by the WTO since the 1980s[15] and "improvement of municipal services".

The EBRD mandates to work only in countries that are "committed to democratic principles". It promotes "environmentally sound and sustainable development", and does not finance "defence-related activities, the tobacco industry, selected alcoholic products, substances banned by international law and stand-alone gambling facilities."[16]


NGOs have criticised the EBRD on the lack of progress the EBRD makes in its main mission, the “transition towards open and democratic market economies.”[17][18]

Environmentally harmful projects

Some NGOs have criticized the EBRD for financing projects they consider to be environmentally and socially harmful. Although it has increased its investments into energy efficiency and sustainable energy in recent years, these NGOs consider the bank continues to diminish the impacts of green investments by financing carbon-intensive development such as coal, oil and gas production, transportation and generation, motorways, and airports.[19][20] Among the contested projects are the Ombla power plant in Croatia,[21][22] the Kumtor Gold Mine in Kyrgyzstan, and the Šoštanj lignite power plant in Slovenia.[19]

The Balkans

The EBRD's activities in the Balkans have attracted particular controversy and criticism,[23] especially when they have centered on national parks or free-flowing rivers.[24] This has often involved the actualized or proposed construction of hydroelectric dams and road infrastructure. Indeed, a 2017 report alleged deficiencies in monitoring and mitigation measures that had been designed to lessen the environmental impact of dam projects financed by the EBRD,[25] while, in March 2018, outdoor clothing label Patagonia helped launch The Dam Truth campaign, which directly requests international banks including the EBRD to "stop investing in the destruction of Europe's last wild rivers".[26]

In 2011, the EBRD approved a €65 million loan to ELEM, the Macedonian electricity utility, for a dam at Boskov Most.[27] The Standing Committee of the Bern Convention[28] requested immediate suspension of the project, with reference to the high biodiversity of the area and its importance as a core reproductive area for the Balkan lynx,[28] one of the most endangered mammals on the planet.[29] In January 2017, the bank cancelled the loan saying the "conditions for disbursement were not met."[30][31]

Again in North Macedonia, the EBRD was criticised by environmentalists[32] after plans were announced to bisect National Park Galičica in the UNESCO Ohrid-Prespa Transboundary Biosphere Reserve with an A3 express road, which would have required certain zones of protection in the national park to be downgraded.[33] Scientists from North Macedonia and across the world signed a declaration in opposition to this and other projects proposed for the Ohrid-Prespa region,[34] a message that was reinforced by a Joint Reactive Monitoring Mission from the World Heritage Centre, ICOMOS and the IUCN, which requested total cancellation of proposed A3 road sections.[35] This recommendation was underlined by the World Heritage Committee at its 41st session in Kraków.[36] Eventually, in February 2018, the Republic of North Macedonia abandoned plans for the road, redirecting the EBRD's funds to other infrastructure projects.[37]

2014 sanctions against Russia

The EBRD announced on 23 July 2014 that it would suspend new investment projects in Russia, following an earlier declaration by the European Council.[38] The European Council declaration was made in the context of the 2014 pro-Russian unrest in Ukraine.[39] As of 2014 Russia has been the biggest funding recipient of all countries. In 2013, the Russian Federation received €1.8 billion for investments from the EBRD and 1 billion € from the EIB. Russia employed the funds to finance a variety of projects like pipeline valves, property acquisitions, and a loan to a hypermarket chain. Two Russian projects were awaiting funding from the EBRD: a €300 million plan for promoting energy efficiency, and a $180 million loan to lease agricultural and forestry equipment.[40] The bank stated that it will continue to manage on-going projects in Russia.[38] Despite denying Russia new funds the EBRD continues to insist on its 6.1% of ownership in the Moscow Stock Exchange, seeking profits from Russia with the Privatisation of the Soviet economy.[41]

Azerbaijan's oil and gas sector

Building Southern Gas Corridor, European countries and companies support gas export from Azerbaijan and contribute to finance Azerbaijan's government.[42][43] The Aliyev regime is considered by many NGOs and watchdogs organizations as repressive and activists and journalists are regularly arrested on false charges and imprisoned.[44][45] The International Federation for Human Rights (FIDH) wrote in 2015, that "for more than a decade Azerbaijan has made shameless use of caviar diplomacy to charm European governments, its most important oil and gas clients".[46] The CEE BankWatch warns that "Developing Shah Deniz stage 2 and the Southern Gas Corridor is likely to cement further the oppressive structures of the Aliyev government".[47]

The EBRD has invested over 3 billion euros ($3.5 billion) in 177 projects in Azerbaijan.[48] The EBRD approved three loans for the Shah Deniz gas field (US$200 million, US$250 million and US$100 million) as well as a US$500 million loan for the Trans-Anatolian gas pipeline (TANAP), and stated its financial support to the Trans Adriatic Pipeline (TAP) could amount to EUR 1.2 billion.[49]



The following presidents have served the EBRD to date (as of 2020).[50]

Recipient countries of investments

The following countries are recipients of funds: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Estonia, Egypt, Georgia, Greece, Hungary, Jordan, Kazakhstan, Kosovo, Kyrgyzstan, Latvia, Lithuania, Moldova, Mongolia, Montenegro, Morocco, North Macedonia, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Tajikistan, Tunisia, Turkey, Turkmenistan, Ukraine and Uzbekistan.[51]

The EBRD publishes its tenders and contracts on its own website[52] and in Development Business, a publication launched in 1978 by the United Nations with the World Bank and other development banks.[53]

Financing members

The following countries contribute in financing the EBRD: Australia, Austria, Belgium, Canada, China, Cyprus, Czech Republic (receiving member until 2007-12-31),[54] Denmark, Egypt, Finland, France, Germany, Greece, Iceland, Ireland, Israel, Italy, India, Japan, Luxembourg, Malta, Mexico, Morocco, Netherlands, New Zealand, Norway, Portugal, Russian Federation, South Korea, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States of America as well as the European Union and the European Investment Bank.[55]


The European Bank for Reconstruction and Development owns 6.07% of the Moscow Stock Exchange.[56]


EBRD shareholders[57]
country date joined capital subscription
 Albania 18 December 1991 30010000
 Algeria 19 October 2021 2030000
 Armenia 7 December 1992 14990000
 Australia 30 March 1991 300140000
 Austria 28 March 1991 684320000
 Azerbaijan 25 September 1992 30020000
 Belarus 10 June 1992 60020000
 Belgium 10 April 1991 684320000
 Bosnia and Herzegovina 17 June 1996 50710000
 Bulgaria 28 March 1991 237110000
 Canada 28 March 1991 1020490000
 China 15 January 2016 29000000
 Croatia 15 April 1993 109420000
 Cyprus 28 March 1991 30010000
 Czech Republic 1 January 1993 256110000
 Denmark 28 March 1991 360170000
 Egypt 28 March 1991 21010000
 Estonia 28 February 1992 30010000
European Investment Bank 28 March 1991 900440000
 European Union 28 March 1991 900440000
 Finland 28 March 1991 375180000
 France 28 March 1991 2556510000
 Georgia 4 September 1992 30010000
 Germany 28 March 1991 2556510000
 Greece 29 March 1991 195080000
 Hungary 28 March 1991 237110000
 Iceland 29 May 1991 30010000
 India 11 July 2018 9860000
 Ireland 28 March 1991 90040000
 Israel 28 March 1991 195080000
 Italy 28 March 1991 2556510000
 Japan 2 April 1991 2556510000
 Jordan 29 December 2011 9860000
 Kazakhstan 27 July 1992 69020000
 Kosovo 17 December 2012 5800000
 Kyrgyzstan 5 June 1992 21010000
 Latvia 18 March 1992 30010000
 Lebanon 17 July 2017 9860000
 Libya 16 July 2019 9860000
 Liechtenstein 28 March 1991 5990000
 Lithuania 5 March 1992 30010000
 Luxembourg 28 March 1991 60020000
 Malta 28 March 1991 2100000
 Mexico 28 March 1991 45010000
 Moldova 5 May 1992 30010000
 Mongolia 9 October 2000 2990000
 Montenegro 3 June 2006 5990000
 Morocco 28 March 1991 24640000
 Netherlands 28 March 1991 744350000
 New Zealand 19 August 1991 10500000
 North Macedonia 21 April 1993 17620000
 Norway 28 March 1991 375180000
 Poland 28 March 1991 384180000
 Portugal 5 April 1991 126050000
 Romania 28 March 1991 144070000
 Russia 9 April 1992 1200580000
 San Marino 7 June 2019 2030000
 Serbia 19 January 2001 140310000
 Slovakia 1 January 1993 128070000
 Slovenia 23 December 1992 62950000
 South Korea 28 March 1991 300140000
 Spain 28 March 1991 1020490000
 Sweden 28 March 1991 684320000
  Switzerland 29 March 1991 684320000
 Tajikistan 16 October 1992 21010000
 Tunisia 29 December 2011 9860000
 Turkey 28 March 1991 345150000
 Turkmenistan 1 June 1992 2100000
 Ukraine 13 April 1992 240110000
 United Arab Emirates 23 September 2021 2030000
 United Kingdom 28 March 1991 2556510000
 United States 28 March 1991 3001480000
 Uzbekistan 30 April 1992 44120000
71+2 total (28 March 1991) 29748890000


The EBRD offers loan and equity finance, guarantees, leasing facilities, trade finance, and professional development through support programs. Direct investments in equity range from 5% to 25% stakes[58] and €5 million to €230 million. Smaller projects are financed both directly by the EBRD and through "financial intermediaries". The EBRD website states it has helped finance over 1 million smaller projects by supporting local commercial banks, micro-business banks, equity funds and leasing facilities.

To be eligible for EBRD funding, "a project must be located in an EBRD country of operations, have strong commercial prospects, involve significant equity contributions in-cash or in-kind from the project sponsor, benefit the local economy and help develop the private sector and satisfy banking and environmental standards."

The EBRD finances projects in sectors including agribusiness, energy efficiency, financial institutions, manufacturing, municipal infrastructure, also known as public works (which includes transport, schools, water supply, waste disposal, and pollution control services), natural resources, power and energy, property, telecommunications, tourism, transport, information technology.[citation needed]

Central Asia

In 2015, the EBRD invested a record amount in the Central Asian region. The total investment in 2015 rose by 75% reaching €1,402.3 billion. Kazakhstan reported the largest total volumes of investment reaching €790 million in 2015.[59]

The EBRD and the Green Climate Fund provided Kazakhstan with a $16.7 million loan for the construction of a new solar power plant in Zhangiz-tobe in the east of the country.[60]

The EBRD invested $761 million in 29 private and public sector projects in Kazakhstan in 2019.[61] Most of the projects are involved in public infrastructure and renewable energy.


In the period 2009 - 2020, the ERD has invested almost €12.5 billion in various sectors of the Turkey's economy, with almost all investment being in the private sector. The EBRD's Turkey portfolio is the largest among the economies where the Bank invests.[62]

In 2020, the ERD lent more than $1.18 billion (€1 billion) to local Turkish firms. It also lent $25 million to the Turkish private lender Alternatif Bank for on-lending to small and medium-sized enterprises and firms affected by the COVID-19 pandemic in Turkey.[63][62]


Since its founding in 1991, so far only the Czech Republic has graduated from borrower to shareholder within EBRD, in 2007, but re-joined the borrower status in 2021.[64]

See also


  1. ^ a b c "In numbers - EBRD Annual Report 2016".
  2. ^ "EBRD Annual Report 2016". 10 May 2017.
  3. ^ "The European Bank for Reconstruction and Development". Overseas Development Institut briefing paper. Overseas Development Institute. n.d. Retrieved 28 June 2011.
  4. ^ "The European Bank for Reconstruction and Development: An Environmental Progress Report, Executive Summary (A CIEL Critique of EBRD's Environmental Policies) (November, 1995)". November 1995. Retrieved 20 February 2020.
  5. ^ "Development bank halts coal financing to combat climate change". 12 December 2018. Retrieved 19 February 2020.
  6. ^ "EBRD puts decarbonisation at centre of new energy sector strategy". 12 December 2018. Retrieved 19 February 2020.
  7. ^ "The EBRD's Energy Strategy and the switch from coal". Retrieved 1 October 2018.
  8. ^ "Annual Report 2016" (PDF). Retrieved 19 February 2020.
  9. ^ "Annual Review 2017" (PDF). Retrieved 19 February 2020.
  10. ^ "Annual Review 2018" (PDF). Retrieved 19 February 2020.
  11. ^ "EBRD delivers record positive impact across its regions in 2019". 16 January 2020. Retrieved 19 February 2020.
  12. ^ Mahmood, M., & Orazalin, N. (2017). Green governance and sustainability reporting in Kazakhstan's oil, gas, and mining sector: Evidence from a former USSR emerging economy. Journal of cleaner Production, 164, 389-397.
  13. ^ "Russia overview". Retrieved 20 April 2020.
  14. ^ "About the EBRD". European Bank for Reconstruction and Development. Archived from the original on 2008-08-22. Retrieved 2009-01-07.
  15. ^ Russell, Muir; Joseph, Soba (1 October 1995). "State-Owned Enterprise Restructuring : Better Performance Through the Corporate Structure and Competition". Retrieved 17 August 2017. Cite journal requires |journal= (help)
  16. ^ "About the EBRD" (PDF). EBRD. 2014-08-01. Archived from the original (PDF) on 2017-03-27. Retrieved 2017-03-26.
  17. ^ "Our mission". European Bank for Reconstruction and Development. Archived from the original on 2013-06-03. Retrieved 2013-06-06.
  18. ^ "Are we nearly there yet? Dilemmas of transition after 20 years of EBRD's operations". CEE Bankwatch Network. May 2011.
  19. ^ a b "The European Bank for Reconstruction and Development". Central and Eastern European (CEE) Bankwatch Network. 2011.
  20. ^ Goldberg; et al. (1995). "The European Bank for Reconstruction and Development: An Environmental Progress Report". Center for International Environmental Law. Archived from the original on 2006-08-25. Retrieved 2013-06-06.
  21. ^ Mikaela Gavas (January 2013). "Reviewing the evidence: how well does the European Development Fund perform?". Overseas Development Institute (ODI).
  22. ^ "HEP and EBRD cancel loan agreement for Ombla power plant". 27 May 2013. Archived from the original on 10 July 2013. Retrieved 6 June 2013.
  23. ^ Neslen, Arthur (11 December 2015). "Major banks put up nearly €1bn for controversial Balkan dams, says report". The Guardian. Retrieved 1 April 2018.
  24. ^ Wendle, John (3 August 2016). "Europe's Last Wild River Is About to Get Dammed". Time. Retrieved 1 April 2018.
  25. ^ Bankwatch (2017) Broken rivers The impacts of European-financed small hydropower plants on pristine Balkan landscapes
  26. ^ "Blue Heart". 3 March 2018. Retrieved 1 April 2018.
  27. ^ "Macedonia's ELEM invites bids for Boskov Most HPP construction - EBRD". Retrieved 1 October 2018.
  28. ^ a b Convention on the Conservation of European Wildlife and Natural Habitats, Standing Committee, 35th Meeting (2015) Recommendation No. 184 (2015) on the Planned Hydropower Plants on the Territory of the Mavrovo National Park ("The Former Yugoslav Republic of Macedonia")
  29. ^ Melovski, D., Breitenmoser, U., von Arx, M., Breitenmoser-Würsten, C. & Lanz, T. (8 January 2015). "Lynx lynx ssp. balcanicus". IUCN Red List of Threatened Species. 8 January 2015. Retrieved 1 April 2018.CS1 maint: multiple names: authors list (link)
  30. ^ "EBRD statement on Boskov Most hydro power plant". Retrieved 1 October 2018.
  31. ^ "Destructive hydropower project in Macedonia loses its only source of funding - Bankwatch". Retrieved 1 October 2018.
  32. ^ Nikolovska, E. and Scarry, D. (27 October 2015). "Macedonia: EBRD's planned destruction of Lake Ohrid Biosphere Reserve". The Ecologist. Retrieved 1 April 2018.CS1 maint: multiple names: authors list (link)
  33. ^ Citrus Partners LLP (2015) ‘Draft Amendments to the Management Plan for National Park Galichica for the Period 2011 – 2020. Strategic Environmental Assessment (SEA)’, REF: J337, London, United Kingdom
  34. ^ "Declaration on Preserving the World Natural and Cultural Heritage of the Ohrid Region". Ohrid SOS. 15 April 2015. Retrieved 2 April 2018.
  35. ^ UNESCO, ICOMOS and IUCN (2017) Reactive Monitoring Mission Report Natural and Cultural Heritage of the Ohrid Region (Former Yugoslav Republic of Macedonia), World Heritage Centre, Paris, France.
  36. ^ UNESCO World Heritage Committee (2017). "Decision : 41 COM 7B.34". UNESCO World Heritage Committee. Retrieved 1 April 2018.
  37. ^ National Commission for UNESCO, Republic of North Macedonia (2018) Progress Report on the Implementation of the Recommendations According to the World Heritage Committee Decision Decision : 41 COM 7B.34. (Available via
  38. ^ a b "EBRD STATEMENT ON OPERATIONAL APPROACH IN RUSSIA". EBRD. 23 July 2014. Archived from the original on 29 July 2014. Retrieved 28 July 2014.
  39. ^ "European Council conclusions on external relations (Ukraine and Gaza)" (PDF). Council of the European Union. 16 July 2014. Retrieved 26 July 2014.
  40. ^ Alec Luhn (16 July 2014). "EU poised to cut funding to Russia and widen sanctions over Ukraine conflict". The Guardian.
  41. ^ Rosefielde, Steven. Unwinding Of The Globalist Dream, The: Eu, Russia And China. World Scientific Publishing Company (January 14, 2018). p. 200.
  42. ^ "In Azerbaijan, EU focuses on energy instead of democracy". Deutsche Welle. 8 October 2013.
  43. ^ "EBRD board approves $500 mln loan for TANAP gas pipeline project". Reuters. 17 October 2017.
  44. ^ "Azerbaijan: Bank Chief Should Raise Rights Issues". Human Rights Watch. 24 May 2016.
  45. ^ "Harassed, Imprisoned, Exiled". Human Rights Watch. 20 October 2016.
  46. ^ "'Azerbaijan is turning into a dictatorship – we shouldn't fall for its caviar diplomacy'". International Federation for Human Rights. August 13, 2015.
  47. ^ "Pipedreams: Public subsidies for Lukoil in Azerbaijan". Issuu. Bankwatch Network. 22 January 2015. Retrieved 6 January 2017.
  48. ^ "EBRD invested $3.5bn in 177 projects in Azerbaijan". AzerNews. 30 June 2021.
  49. ^ "Southern Gas Corridor". Retrieved 2018-03-07. CC-BY-SA icon.svg Material was copied from this source, which is available under a Creative Commons Attribution-ShareAlike 3.0 Unported license.
  50. ^ "History of the European Bank for Reconstruction and Development (EBRD)(EBRD)". Retrieved 17 August 2017.
  51. ^ "Where the EBRD works". Retrieved 17 August 2017.
  52. ^ "EBRD procurement opportunities". Retrieved 17 August 2017.
  53. ^ "Development Business".
  54. ^ "Czech Republic homepage [EBRD – Countries]". Archived from the original on 22 February 2008. Retrieved 17 August 2017.
  55. ^ "European Investment Bank and EBRD will co-manage EU-supported projects in Eastern Europe and Central Asia". 27 November 2006.
  56. ^ "Moscow Exchange MICEX-RTS stock". Retrieved 20 April 2020.
  57. ^ "European Bank for Reconstruction and Development Shareholders and Board of Governors".
  58. ^ "EBRD mulls taking part in Azeri IBA sale, eyes 2 percent GDP growth". Reuters. 2018-02-20. Retrieved 2018-02-20.
  59. ^ "EBRD investment in Central Asia reaches record €1.4 billion in 2015". Retrieved 23 February 2016.
  60. ^ "EBRD and Green Climate Fund provide $16.7M to finance Kazakh solar power plant". 26 April 2019.
  61. ^ "EBRD invests more than $761 million in 29 private, public sector projects in Kazakhstan in 2019". The Astana Times. 28 January 2020.
  62. ^ a b EBRD extends funds to Turkey’s Alternatif Bank
  63. ^ European bank backs Turkish firms against pandemic
  64. ^ "Czech Republic graduates from EBRD, Press release 23 October 2007". Archived from the original on 29 June 2011. Retrieved 2011-01-25.

External links

  • Official website
  • Bank Information Center
  • US Commercial Service Liaison office to EBRD
  • Central and Eastern European Bankwatch network of civil society groups monitoring and lobbying on public Bank projects and policies
  • Balkan Rivers