Developing Ukraine’s capital markets

The initiative was formalised today in a Memorandum of Understanding (MoU) signed by Elisabetta Falcetti, the EBRD’s Regional Director for Poland and the Baltic States, Marek Dietl, President of the Management Board of the Warsaw Stock Exchange, and Arsen Ilin, Commissioner at the National Securities and Stock Market Commission (NSSMC) of Ukraine. 

Capital markets play a critical role in financing economic growth, and Ukraine’s market infrastructure needs to be further developed so it can effectively channel investment to support reconstruction.  

The parties therefore seek to establish structured cooperation to contribute to Ukraine’s recovery by enabling capital markets to become a meaningful source of finance and attracting international and local investment. They also aim to support Ukraine’s integration into EU and international capital markets, and develop financial services and products based on international best practice and innovative financial technologies.  

Under the agreement, the partners will undertake market and regulatory framework assessments, and conduct due diligence in respect of the development of capital market infrastructure and local financial market development in Ukraine. In addition, they will work on elaborating options on the modalities of the EBRD’s and WSE’s potential support for developing Ukraine’s capital market infrastructure. 

The EBRD’s Elisabetta Falcetti said: “Together, we will help Ukraine strengthen its capital markets and attract international investment to support its reconstruction. Our goal is to bring international expertise to support the development of these markets to ensure that transparent and efficient market-based mechanisms, fully aligned with the principles of good governance and regulation, are in place to channel private sector funding to Ukraine in the reconstruction phase.” 

“For numerous years, the Warsaw Stock Exchange and Polish investors have been keenly observing the support of the Ukrainian capital market. Today, a formal agreement has been signed to elevate these relations to a more advanced level. This entails not only the sharing of our expertise and experience in various financial products but also active involvement in constructing an additional, supplementary, and efficient financial ecosystem based on the European framework,” said Marek Dietl, President of the Management Board of the Warsaw Stock Exchange. 

Arsen Ilin, Commissioner at Ukraine’s NSSMC, said: “Our international partners from WSE and EBRD continue actively to support Ukraine to restore its economy at one of the most difficult times for Ukraine. This MoU is an important step towards the development of Ukraine’s capital and organised commodity markets. The route taken, and the results achieved by WSE locally, are real confirmation that there is an opportunity for benefitting from the accumulated experience of creating modern capital markets and relevant infrastructure in Eastern Europe within the EU market.”  

The EBRD is the leading institutional investor in Ukraine. It has significantly increased its investment in Ukraine’s real economy in wartime, committing to invest €3 billion there in 2022-23, with a focus on energy security, vital infrastructure, food security, trade and support for the private sector.