EBRD Invests In Developing Lviv Industrial Park In Ukraine

US$ 24.5 million equity investment will support the development of vital industrial and logistics warehouse space in western Ukraine
  • EBRD commits to 35 per cent stake in M10 Lviv Industrial Park project in western Ukraine
  • JV with Dragon Capital will expand Ukraine’s access to vital services and products
  • EBRD to invest up to US$ 24.5 million, of which US$ 5.5 million will be committed


The European Bank for Reconstruction and Development (EBRD) is making an equity investment of up to 35 per cent of an ambitious project to develop an industrial park in Lviv, western Ukraine, creating warehouse and manufacturing space that will help Ukraine to expand access to vital services and products.

Russia’s war on Ukraine has strained supply lines into and out of the country and internally. Continuing uncertainty over sea routes for imports and exports gives added importance to overland routes to and from the European Union via western Ukraine, and for warehousing for goods.

The M10 Lviv Industrial Park, a modern multi-phase multi-tenant industrial park located 60 km from the Ukraine-Polish border, which is being developed by Dragon Capital Investment Limited, will provide new industrial and logistics warehouse space essential for sustained humanitarian and economic activity in Ukraine both during the war and post-war reconstruction.

The EBRD will invest a total of up to US$ 24.5 million equity in the US$ 70 million development. Of this, up to US$ 5.5 will be invested in completing Phase 1 of the project. Phase 1, interrupted by the Russian invasion of Ukraine in February, resumed in the summer 2022 and completion of the first 14,400 square metre warehouse complex is expected in the second half of 2023.

“This is an especially important project for Ukraine in these challenging times and EBRD investing equity will send a strong signal to local and foreign investors. By increasing the availability of high-quality warehousing, the project will expand Ukraine’s access to vital services and products,” said Vlaho Kojakovic from the EBRD.

“We are happy to welcome EBRD as our equity partner in this very important infrastructure development project for Ukraine. Located close to the EU border, M10 Lviv Industrial Park provides for new logistics and production capacities in western Ukraine, which have been in increased demand since the start of Russia’s full-scale invasion,” said Tomas Fiala, CEO of Dragon Capital.

The EBRD’s Lviv Industrial Park investment bridges a financing gap caused by adverse market conditions and is in line with the Bank’s stance on Ukraine and its overall crisis response.

The EBRD has a unique role to play in this crisis. After more than 30 years of promoting economic transition in Ukraine, the Bank’s emergency response to the war focuses on support for the country’s economy today and preparing for reconstruction in future.

The Bank’s actions complement those of other international financial institutions helping the Ukrainian government, as well as those of humanitarian agencies. 

As well as bolstering energy security, EBRD funding for Ukraine goes towards trade finance to maintain the flow of essential goods, food security and vital infrastructure. EBRD funding is also used to help refugees in neighbouring countries and to assist the municipalities hosting them.

In October 2022, during a visit to Kyiv to meet Ukraine’s Volodymyr Zelenskyy, EBRD President Odile Renaud-Basso told the Ukrainian President of the Bank’s determination to support Ukraine while it defends itself against Russia’s aggression and pledged that the EBRD will commit up to €3 billion over 2022-2023 to help Ukraine’s businesses and economy keep functioning. In 2022, the EBRD deployed €1.7 billion in Ukraine and mobilised a further €200 million via partner banks.

Ukraine is one of the Bank’s largest recipients of investment. From the beginning of the war in February 2022, the Bank moved swiftly, from condemning the Russian attack on Ukraine, facilitated by Belarus, to preparing an immediate financial response. Its assistance aims to ensure the resilience of Ukraine and the countries that are welcoming refugees, combined with a plan for the country’s reconstruction when circumstances allow.


More about М10 Lviv Industrial Park: https://m10.com.ua/


About Dragon Capital

Dragon Capital is a leading Ukrainian group of companies in the field of investment and financial services. The company has a decades-long track record of private equity investments in leading manufacturers of goods and service providers in Ukraine, as well as in landmark residential and commercial real estate projects.
Dragon Capital Property Management manages the company's commercial real estate portfolio that includes 30 properties (business centers, shopping malls and logistics complexes) with a total area of 658,000 m2. This makes Dragon Capital a major player in Ukraine’s real estate market.
Dragon Capital is currently developing two industrial parks, M10 Lviv Industrial Park in Lviv, with an area of 140,000 m2, and E40 Industrial Park near Kyiv, with an area of 200,000 m2.


About The European Bank for Reconstruction and Development (EBRD)

The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 69 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated