 Good afternoon and welcome to this seminar run by the Institute of International and European Affairs, and you're all very welcome, particularly anybody who's new to our audience. We apologize for a slight delay in getting started, but I know we're going to have a really interesting session. We're delighted to be joined today by Odile Renard Basso, President of the European Bank for Reconstruction and Development, the EBRD, who has given her time today, and I'm speaking about a topic that is so relevant to us all at the moment. The title is Perseverance and Resilience, Rebuilding Ukraine. President Renard Basso, Odile will will assess how the international community and international financial institutions can support Ukraine as we know Ireland is doing, and will also outline the EBRD's response to the Russian invasion as well as the role that the bank can play in rebuilding. Now, President Renard Basso, whom I refer to as Odile, if that's all right, has a very impressive CV. I just give you a little idea of that is she was elected the seventh president of the EBRD on the second of November 2020 by the Board of Governors, and she is the first ever female head of a multilateral development bank. Prior to joining the EBRD as Director General at the French Treasury, Odile oversaw the development of France's economic policies leading on European and international affairs, trade policies, financial regulation and debt management. In her capacity, she also served as Vice President of the European Economic and Financial Committee, deputy to the G7G20 groups and French governor or alternative governor of the World Bank and the Asian Development Bank. And she was also chair of the Paris Club. Now, Odile will speak to us for about 20 minutes. I'll say to our audience, you can put in your questions using the Q&A button on your on your screen. The function is on the record, as will the questions be. And also we'd like you to use the tweet if you're still using tweet at IIEA, and we can then proceed with with Odile. So Odile, I'll let you go ahead now if you don't mind. And then we will have time at the end for questions and thank you very much for joining us today. Thank you very much, Laura. And thank you for the Institute for International and European Affairs who have invited me to talk about this issue, which is indeed very important and very important for the EBRD as such. So this war on Ukraine and its people is really, I believe a human and geopolitical catastrophe which really strikes at the heart of Europe. I'm very happy to address you on the response of international financial institutions like EBRD and what we can do without what we are doing and how I see the challenges moving forward. But before moving into that issue, let just a few words maybe on the EBRD as such. You know it was a bank which was created 30 years ago when at the time Soviet Union collapsed to facilitate the transition to open market economies in the former Soviet countries, so Central Europe and Russia. And progressively the bank expanded its mandate to cover 38 countries, both within the EU, so I mean former communist countries, Eastern European countries, but also outside from the, I mean Eastern 2000 neighborhood, Western Balkans, Central Asia and Mongolia. So today we intervene in 38 countries, soon 39 with Algeria joining us, being in the process of joining us, and we invest around 10 billion, 11 billion a year between the this order of investment. We have 71 shareholders, including and we are at the same time, I mean European majority institution with commission EU commission, EIB being part of our members and all EU member states. Together they have a majority of the shareholders of bank, and also a G7 majority, if you add up all G7 countries they also have a majority. So in a way, we are a multilateral development bank with a strong EU backbone or strong EU component. And we work very closely with the EU commission as part of as one of the implementing partner of EU priorities, part of Team Europe also. One of our specific feature compared with other MDB is to have a very strong private sector mandate. So our objective is to have 75% of our investment in the private sector. We do 25% in the public sector and we work a lot on municipalities, sub-supreme, public owned companies and so forth. And we bring together financing, but also policy engagement. So there are a lot of policy advisory activities to help our countries of operation design the right policy framework so as to facilitate private sector investment. And one of our key priorities in that respect I will not have the opportunity to talk too much about it so let me flag that at the beginning also because we are I mean I'm coming back from COP and we are still in the COP process. We have a very strong green objective with 50% of our financing to be in the green sector. And an objective also to starting at the in January 2023 to be to have all our investment consistent with Paris agreement so fully Paris alive at the beginning of this year. Maybe now focusing a bit more on Ukraine, which is a key item of today. So Ukraine was part of the, I mean, EBRD mandate and EBRD countries of operation since the beginning, and we've been key partner in the country in the last three decades. We're the largest institutional investor. And since we started our activity in the country we invested more than 16 billion euros in more than 500 projects. Before the war started Ukraine was our third country of operation in terms of volume beyond a bit below Turkey and Egypt. And we have, we had a strong team in Kiev with 100 people in the ground, Kiev, but we're also we were also present in Kharkiv, Lviv and Odessa. So a strong local presence and these are also one feature of the EBRD, more than 100 people in the country and not working not only the capital but also in smaller cities in order to work with SMEs and in particular. With our work in the country we have consistently supported a hand in hand EU before my gender, for example to tackle corruption, foster good governance, which is absolutely key to be able to develop the private private and dynamic private sector. We have also worked a lot in the financial sector to make it more resilient that we post Maidan post 2014. There were a lot of difficulties in the banking sector to we contributed a lot to clean up the banking sector. And also of our important involvement in the country was following Chernobyl to build a shelter around the nuclear plant of Chernobyl to ensure nuclear safety in the neighborhood. And the destruction of reactor four. So this is really to flag I mean our long standing activity in Ukraine. So when the war started in February 2022, we took a very clear stance towards Russia and Belarus. Our shareholder of the bank, and we used to have a very large, very dynamic activity in Russia, which already stopped in 2014, all our financing to Russia. And at that point of time it was at some point in time it was three billion a year investment in Russia so we stopped it completely in 2019. But in 2022, February 2022, we formally suspended we took a decision with all our shareholders supported by two sort of our more than two sort of our shareholders to formally suspend all our new financing and existing financing to Russia so the expansion of access to the banks resources to Russia and Belarus, and closed our office in Moscow, and Minsk, and one very accelerating one one in dawn of our portfolio in the two countries. On the other side so this is as that was the decision taken in reaction against time in Russia and Belarus in reaction of the war. On the other hand, since the war started we never stopped our activity in Ukraine, directing finance and assistance to the areas more needed, most needed. So we continue our activity in Ukraine and even increased the level of investment in Ukraine this year, focusing on the real economy, and what is needed to keep the economy afloat. And this is for example trade finance that we do a lot of trade financing, you know short term trade financing which is very, very important to keep important export going on and and for that, the banks need some guarantees which we provide them. So that's all infrastructure, and this is, and we provide a lot of support to the railway company, and the electricity network company, Ukraine Ergo, as well as the gas company in order to ensure energy security. We provide a sort of credit line of 300 million to buy to help help NAFTA gas to buy gas, and it should be brought up bring up to 200, 500 million in the coming weeks, but also support to food security and pharmaceutical pharmaceutical companies. And in food security, we work a lot with the banking sector to risk to share risk with them cover them with some of the credit they provide to agree business companies or provide ourselves direct financing to agree business companies. So this is very, this complement, we see that as very complementary to the budget support, which have been provided by the lot of bilateral donors through the World Bank in particular but also through the AMF, in order to finance, you know, current expenditure in the government such as, I mean, pension finance, I mean pension, to pay the pension to pay the civil servants, a minimum needs for the government. So we are very complementary to that focusing on the as I was saying the real economy and and private sector and key infrastructure. And we haven't been addressed adjusted our financial adjusting our financial support to the development. Very recently, for example, in view of what happened with the most recent bombing in the last month by Russia on of key infrastructure. We are just expanding financing to the electricity network company Ukraine ago of the new loan of 300 million euros in order to help them financing this urgent repair the need in order to avoid the country to go completely in a sort of in the form of blackout. And this was decided just after a visit. I did in Kiev three weeks ago, where we met President Zelensky and our key counterparts in the country and we realize how deeply it was to have this sort of flexibility and very urgent financing to provide to be to help the companies and the government to face with this emergency repair needs. So, and we've been able to do that. I think in March, April last year, we decided to continue to support Ukraine with an approach, which is very was very specific at the point of time, from EBRD, which is to take to accept to take further risk on our balance sheet. But subject to get some risk sharing from our donors and shareholders with an approach based on 50-50. So we took, we considered that we could take some 50% of a risk on our balance sheet, but needed 50% of donor support or guarantees in order to to mitigate the risk because of course when you expand, when you expand your activity in a country in war, in a war zone, you never know whether what to finance will not be bombed a week after, or whether your client will be able to repay you because it will be suffering new damages in relation to the war. So we decided to take part of a risk, but to ask for mitigation from our shareholders. And we committed to deliver up to 3 billion euros of financing in 2022 and 2023. So for the two years with 50% donor coverage. But to now with the different activities I described you, we were, it's very likely that we will reach around 1.5 already in 2022 of financing, maybe more, even maybe even a bit more, but and then we will continue to do this next year. And we've taken was quite unique as I was referring to among other MDBs. I think the other MDBs decided first to ask for full coverage of their activities. IFC is now moving the same approach than us, but for the other MDBs it's not really the case and particularly the World Bank they consider that they cannot take more risk. What they do is fully financed by donor support. What we've been able to do will never have been possible without the support of our shareholders. When we announced our approach the US were the first one committing in the package represented to Congress to provide us with 500 million of grants in order to cover to help us with the coverage of our activities. And then the EU was able, the Commission was able to reallocate some of its guarantees and we got a lot of support also from bilateral European member states with unfunded guarantees or funded guarantees. So helping us with covering the risk for targeting the transaction. So this was very unique up to now we've raised something like 1.3, 1.4 donor support which is absolutely unique for EBRD and has really helped us to announce this 3 billion package for the 2 years. So what I can say is that in the international response it was a bit, I mean, adjusting to the emergency so not completely orderly, I mean, everybody, every country is trying to find solution in the short term. But I've never seen to be throwing such a high level of support for countries in a crisis and in such a, of course, it's a very exceptional crisis with the war situation very and sort of incredible challenge for the country but I think the level of support from the EU, US, Canada and world international community has been huge. It's true from the level of support we've received on our side, but it was also complemented by a very high level of budget support from the US and EU, which help because the needs are absolutely huge in terms of budget support. They have been assessed to something like 3 billion per month by the country and confirmed celebrities figure have been confirmed by IMF. And I think G7 as a whole has been able more or less to meet the need for 2022 and now US and EU are working to secure and ensure some, I mean, additional previsibility and regularity in the financing for 2023. And I think the EU has been reaching and is very close or has reached an agreement on a kind of mechanism with using the same frameworks and the ARF in order to be able to deliver this kind of support for Ukraine for the next year. So I think this is a very important step forward. And it has been a bit complex but I think things are moving now quite quickly. So that brings me to the second part of my presentation, which is a bit focusing on the world of international community and the framework for cooperation. As I was saying, external support is absolutely fundamental for the country to be able to to sustain the war. There's a lot of military support coming from, from the US, from the UK, from EU, from EU member states, but as I was underlying the budget support and financial support for the real economy is also very important because if you want the country to be able to get, I mean, to remain resilient and be able to fight. It's very important to get appropriate support. I think we were all amazed. I mean, all the international community has been amazed and impressed by the resilience of the country, both on the military side but also on the economic side that this is this will not have been possible without support. So there have been also a lot of discussion on how to better get organized because you have all these donors contribution, but also international organization, interweaving and I think getting a better more structured coordination will be very important now. And for the reconstruction phase, you may have noticed that President Zelinsky has called for financial runtime which is this structure the runtime coordination has been used for military purposes around NATO, and I think that we are trying to build the objective and the key international partner is to develop the same kind of same kind of framework for economic and financial support. And we really believe that indeed that there is a need for a more formal coordination platform. An inclusive platform bringing together all, I mean, Ukraine and all key partners so bilateral donors such as the US, G7, the EU, all key donors and international financial institutions. And I think that the political steering committee at the minister level could be very useful to provide high level guidance and support to ensure that the financial needs are assessed, for example by the IMF will be our met and that provide also some transparency and accountability on the commitments taken and the disbursement made. And I suspect that the IMF is now working on the sort of board monitor program, which will give a macro economic framework for all this activity. They are working with the Ukraine, this should come to the board by the end of the year. It's not a program. It's a board monitor program, so more giving the framework, the transparency on the financial and economic situation, budgetary situation, assessment of the financing needs, and will be an important pillar of this discussion in terms of coordination. And it will be allowing everybody to have a better understanding of what is needed, what is already covered, what is the remaining gap. And then there's this sort of policy, I mean political platform at ministerial level, we believe that there is a need for a more structured IFI, EU Commission coordination platform. We already have an existing group coordination group, which we convened as EBRD since the beginning of the war, and which brings together IMF, EIB, World Bank, IFC, the European Bank of the European Council of Europe, and the Commission. This group has been meeting every two weeks since the beginning of the war, and has been very useful in understanding what was the priority for the different institution, what was the financing contribution, the state of commitment, and so forth. Now we believe it's important to be more inclusive and to include Ukraine, and also key donors in this group, and to develop a sort of bit of a secretariat. So that's our contribution, and I think it will be very important to have these two level more political level of coordination and then operational level of coordination. It's also my take is that rather than trying because in this kind of situation you always have a lot of ideas, new ideas, possible creation of new institution. I really believe that what we need more is building on existing institution and ensure that they are working together, and in order to be able to deliver quickly. I also believe that there will be no, I mean, we are not in a world where we are in the war and suddenly come to a reconstruction phase, but it's very what is most likely is a sort of progressive already now in the ongoing war, there are some reconstruction needs. And so we need to have to be able to address them, even if we are not in a sort of very stable environment where we can start in a peaceful reconstruction, very ambition planning and so forth. So, I think it's very important to focus on what can be done now the more we can provide support at the current juncture, the better the easier the reconstruction will be. And we need to get prepared for full fled reconstruction, but also deliver on the ground now so I think that's why building on the existing structure and strengthening existing coordination mechanism is the best way forward at the current juncture. Moving a bit towards, I mean, what reconstruction will entail. Let me say a few words. First of all, the needs will be very, very important. And the World Bank has made an assessment preliminary assessment, which he which was something like 350 billion. But it's, it was even be it was this figure was articulated before the very recent new and very intense attack on key infrastructure network so I think this would be a very evolving data and it's an area where things get get outdated very quickly so we need to remain very agile and adjust to the reality, the evolving reality on the ground. But that's so this is your, it gives an order of magnitude of what will be needed. And in the very short term, the World Bank assistant and there also before the recent intensification of the attacks was already 17 billion for end of 2022 and 2023. So, huge needs. This means that this window because it cannot be covered only by public financing, but private financing domestic investment and attracting FDI will be key in the bridge financing gap and in the reconstruction phase. This means that we need to focus on two preconditions. The first one is the fact that IFI under the community must support both public and private sectors including the state enterprise for the immediate recovery to maintain the well functioning of the economy and for long term reconstruction. And this also requires the IFI is of course to find a sustainable financing model giving the high level of risk. The second precondition will be to maintain a macro financial stability in the country to be able to support private sector development, and that's why this program, a monitor board monitor program will be very will be a very important step, but it will be an important and will limit and will frame I mean a voter to completely go into monetary financing to trigger hyperinflation and so forth and will be very damaging damaging for private sector financing of the reconstruction. In addition, it's vital to strengthen financial and capital markets, and one important dimension in this respect will be EU financial regulatory alignment, we are working a lot on that with Commissioner McGuinness and I mean an EBRD providing support to Ukrainian authorities and also promoting effective banking system through, for example, Resolute NPL resolution possibly for before reconstruction recapitalization of local banks, and this will complement IMF macro find macro fiscal framework. Last one, but not least, it will be I mean the work on human capital is also very important and crucial. And even now this is an area we are we are focusing on in the support we provide to clients for example, we also bring into the discussion this human capital dimension, which is very much needed work for such with items such as workforce planning. When companies are struggling with very high staff turnover, relocation, and the need for example to be skill, help skill, existing staff. And the gender dimension so this is something we are already taking into consideration in the work we are doing with our clients and it will be even more important in the context of reconstruction. For the long time I wanted to make in the discussion in the reconstruction in the reform agenda because as I was flagging it was a very important dimension in our work in Ukraine before the war. And there were some progress made, but of course the country still had some important challenges in terms of corruption, rule of flow governance in the public sector, but also, in the public companies and so forth. With the war, this very important structural agenda, I mean he doesn't attract so much attention and the capacity for the government to continue to do some reform is limited. What we are focusing on now is ensuring that there is no backtracking, and that some key features of the reform implemented are preserved, and that of course the money and the investment we do are well managed and, and, and I mean we have sufficient guarantee and we have sufficient guarantee for the use of proceeds. But when recovery and when the situation will be stabilized, returning back to reform will be very important. And in that respect, I think, one very important new element is EU prospects and EU accession perspective. It's very clear from my perspective that EU integration process will be a key anchor for reform in the coming years. It will, and it will help I think driving the reform agenda on the Ukraine side, because bringing the key community in Ukraine will be a huge step forward. So I think that it's already very important that Ukraine's national recovery plan already identified, strengthening institutional capacity, the oligarchization as a prerequisite of this reform agenda, also with a need to tackle corruption, but moving forward, building an enabling business environment, attracting foreign direct investment will require to deepen this agenda to create a full fledged level play, I mean true level playing field to foster competition, and so forth. So the full fledged transformatory transformation agenda that we need to be to go and in hand with the financing for reconstruction. So I will conclude here, I mean, just highlighting our very strong commitment to continue to support Ukraine to work and in hand with our shareholders and donors to find the best way to do so to be able to do so without undermining our financial liquidity as a bank. But I think that up to now we've been able to find the right balance and we continue to deepen the discussion with with the shareholders and I think that everything we can do in the country is absolutely key for them to be able to sustain and win to get out of the war stronger and better.