The European Bank for Reconstruction and Development (EBRD) is stepping up support for Ukraine’s food and beverage sector with a new €11 million loan to Karpaty Mineral Water Group (KMW), one of the country’s leading beverage producers. The financing, backed by partial risk cover from the European Union’s Ukraine Investment Framework, will fund the construction of a new energy-efficient beverage plant in the Lviv region of western Ukraine.
Doubling Production Capacity and Strengthening Food Security
The greenfield facility will almost double KMW’s annual output, allowing the company to meet growing nationwide demand for bottled mineral water and other beverages. This expansion is especially important for regions heavily affected by the ongoing war, where reliable access to beverages and essential goods is crucial.
KMW specialises in mineral water, soft drinks and energy drinks, and has grown since 2002 into Ukraine’s second-largest producer of mineral water with a strong presence in central and western regions.
High-Efficiency Production and Reduced Emissions
The new plant will be developed according to the highest energy-efficiency standards, reinforcing KMW’s long-term sustainability goals. Its main production line, supplied by a German manufacturer, will significantly outperform the company’s current equipment in terms of energy savings.
The upgraded systems are expected to avoid approximately 2,477 tonnes of CO₂ emissions each year, supported in part by a FINTECC grant under the EU4Climate programme. This investment supports Ukraine’s efforts to modernise industry while reducing environmental impact.
Supporting Veterans and People Affected by the War
In addition to expanding production, the project has a strong social component. The new plant will create around 80 new jobs, and at least half will be designated for veterans and people with disabilities.
KMW will also introduce training programmes for veterans and collaborate with local partners to help establish a rehabilitation centre, providing both employment pathways and psychological support for those affected by the war.
Part of Larger EBRD Support for Ukraine
The EBRD has become Ukraine’s largest institutional investor, deploying more than €8.5 billion into the real economy since Russia’s full-scale invasion in 2022. Backed by a recent €4 billion capital increase, the Bank remains committed to supporting Ukraine through wartime challenges and its future reconstruction.
The investment in Karpaty Mineral Water demonstrates the EBRD’s strategy of backing companies that play a vital role in food security, local employment, energy efficiency and economic resilience.
