LONDON, April 10 (Reuters) - The European Bank for

Reconstruction and Development (EBRD) posted a profit of 2.1

billion euro ($2.26 billion) for 2023, it said in a statement on

Wednesday.

The gain, led by a 1 billion euro return on equity

investments, offset a 1.1 billion euro loss in the prior year

following Russia's invasion of Ukraine.

"With global challenges such as the climate crisis,

macroeconomic uncertainties and geopolitical tensions growing

more and more acute, the EBRD has the capacity to accelerate its

support for clients and countries of operations," EBRD Chief

Financial Officer Soha El-Turky said in a statement.

CONTEXT

The bank said in January that its 2023 investments reached a

record 13.1 billion euros, with half of total financing related

to the green economy.

In 2023, its board approved a 4 billion-euro capital

increase that it said would enable the bank to double its

Ukraine investments once reconstruction begins, and also began

the process of expanding membership to Sub-Saharan countries

including Ghana, Senegal and Ivory Coast.

WHY IT'S IMPORTANT

EBRD is one of the top lenders to Ukraine's private sector,

and is also a key source of much-needed affordable finance for

energy transition, infrastructure and other development projects

from Poland to Turkey.

The financing it can provide is particularly crucial after

the global interest rate-hiking cycle boosted private borrowing

costs for most borrowers.

($1 = 0.9310 euro)