EBRD, Netherlands and USA back Ukraine energy funding

0
18336

€372m announced to help repair and enhance Ukraine’s energy system against backdrop of damage from Russian invasion. 

The European Bank for Reconstruction and Development (EBRD) has approved a financing package that will deliver €372m to support Ukraine’s electricity transmission company, Ukrenergo. The money will be used for swift emergency repairs following heavy bombings of civilian power infrastructure during Russia’s war on Ukraine.

Energy infrastructure is under significant strain in Ukraine as winter sets in and the EBRD will make a sovereign guaranteed loan of €300m. Up to €150m will be provided for equipment procurement to implement emergency repairs while a further €150m consists of capital structure support.

Separately, a grant for up to €72m has been provided by The Netherlands. This will be blended into a single €372m package to support the immediate transmission infrastructure restoration needs of Ukrenergo.

The United States of America, which has contributed $500m to the EBRD’s Crisis Response Fund and is strongly committed to addressing to the impact of the war on Ukraine, will support up to 50% of the EBRD’s loan with a funded guarantee.

EBRD president Odile Renaud-Basso said: “Urgent repairs on Ukraine’s electricity network is an immediate priority for the EBRD. The Ukrainian people and businesses need continued access to electricity to go through the winter. With this important financing, we will help Ukrenergo perform swift emergency repairs of damaged equipment, high voltage substations and transmission lines. It will ensure the continued provision of vital power transmission services during the heating season for Ukrainian households, businesses and communities.”

As well as bolstering energy security, EBRD funding for Ukraine goes towards trade finance to maintain the flow of essential goods, food security and vital infrastructure. EBRD funding is also used to help refugees in neighbouring countries and to assist the municipalities hosting them.