EBRD, IFC Invest $435 Million in Ukraine Telecom

The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) are jointly investing $435 million into Ukraine's newly merged telecommunications companies, Lifecell and Datagroup-Volia, marking the largest foreign direct investment in Ukraine since Russia's invasion in 2022. This investment, with each institution contributing $217.5 million, aims to enhance telecom infrastructure, providing improved connectivity for 10 million mobile customers and faster internet for over 4 million homes. The merger creates Ukraine's second-largest telecom operator, which is expected to lead to better network resilience and lower energy consumption. The project is supported by guarantees from the French government and the European Commission, underscoring international confidence in Ukraine's economic potential. Holger Muent of EBRD emphasized that this investment acts as a 'game changer' for the nation's digital services. This collaboration is seen as a vital step towards bolstering Ukraine's economic recovery amid ongoing conflict.