The UK is backing a new €50 million risk-sharing facility (RSF) launched by the International Finance Corporation (IFC) and OTP Leasing to expand access to finance for Ukrainian businesses, according to a press release.

The initiative, supported through the UK’s Foreign, Commonwealth & Development Office, will provide critical leasing options for small and medium enterprises (SMEs) and midcaps, with a focus on renewable energy, climate-smart agriculture, and low-emission transport.

Since Russia’s full-scale invasion in February 2022, Ukraine’s economy has been battered by supply chain disruptions, power shortages, and a sharp drop in lending, which fell from 12.8% of GDP in 2021 to 9.2% in 2024.

After contracting by nearly 60% in 2022, the leasing sector has since begun a modest rebound. With Ukraine having lost nearly two-thirds of its energy generation capacity, the facility places special emphasis on sustainable and decentralised energy solutions.

Under the deal, IFC will share up to half the credit risk — capped at €25 million — while OTP Leasing extends financing to firms that are often underserved. A 10% capital expenditure buydown mechanism will make green investments more affordable compared to conventional alternatives.

The IFC is the private investment arm of the World Bank Group, based in Washington, DC, USA.

Andrew Ockenden, the UK’s Chargé d’Affaires in Kyiv, said the program “will not only respond to the immediate needs of SMEs but help build a more sustainable future economy for Ukraine,” adding that the approach reflects the priorities set out in the 100-Year Partnership Agreement signed by Prime Minister Keir Starmer and President Volodymyr Zelenskyy earlier this year.

Andrii Pavlushyn, CEO of OTP Leasing Ukraine, noted that the partnership with IFC “will strengthen our ability to provide clients with sustainable and innovative leasing solutions, promote economic growth and support Ukraine’s resilience in challenging times.”

Lisa Kaestner, IFC’s Senior Country Manager for Ukraine, highlighted that the initiative will help businesses in critical sectors invest in “climate-smart agriculture, small-scale renewable energy generation, and energy-efficient projects,” boosting resilience at a time of severe disruption.

The RSF is part of IFC’s Economic Resilience Action (ERA) Program for Ukraine, supported by the UK. Since February 2022, IFC has committed $2.5 billion to Ukraine’s private sector under ERA, including $940 million in mobilized financing. IFC expects RSF projects to unlock around $1 billion in private-sector financing across Ukraine.

As of March 2025, OTP Leasing holds roughly one-third of Ukraine’s leasing market, with a portfolio valued at $330.5 million. The company is wholly owned by Hungary’s OTP Bank Plc.