Baku: The European Bank for Reconstruction and Development (EBRD) has announced a strategic initiative to allocate 5 billion euros to support Azerbaijan and other regional countries impacted by the ongoing conflict in the Middle East. The Bank's conflict response aims to bolster economies directly affected by the turmoil, as well as neighboring countries experiencing spillover impacts. According to Azeri-Press News Agency, the conflict is causing significant economic and social disruptions across many of the EBRD's operational regions. These disruptions include disrupted trade routes, energy and commodity shocks, weakened investor confidence, and broader societal costs. The extent of these impacts largely depends on the conflict's progression in the coming weeks and months. The EBRD's response strategy targets economies such as Iraq, Jordan, Lebanon, and the West Bank and Gaza, along with neighboring countries like Egypt, Trkiye, Armenia, and Azerbaijan. The Bank plans to deploy the 5 billion euros in inves tments by 2026, with the volume of investment being demand-driven due to the evolving nature of the situation. EBRD President Odile Renaud Basso emphasized the Bank's commitment to providing countercyclical responses during uncertain times, ensuring support for economies, clients, and populations. The response plan includes two phases: immediate relief to support economic activity and financial sector stabilization, followed by laying the groundwork for sustainable growth and recovery. The initiative will also focus on strengthening energy security by providing liquidity support to energy utilities and accelerating the transition towards diversified and resilient energy systems. Continued support for state-owned enterprises will ensure the provision of essential goods and services. In the private sector, the EBRD aims to support firms facing energy market disruptions and agrifood value chain challenges by offering working capital and liquidity. This includes a recently approved project to support Lebanon's retail chain. Long-term strategies will involve investments in infrastructure, trade routes, and digital solutions to enhance economic connectivity and growth. The Bank's efforts will be complemented by policy dialogue, technical assistance, and advisory support for governments, clients, and SMEs, fostering a more resilient and inclusive economy. The EBRD will coordinate closely with governments, donors, and international financial institutions to mobilize support and help affected economies recover stronger. Since 2012, the EBRD has invested over 26.5 billion euros in the southern and eastern Mediterranean region, including significant investments in Trkiye. The Bank's experience and longstanding presence in these areas will be instrumental in implementing its conflict response strategy.