EBRD Mobilizes Funding to Strengthen Ukraine’s Energy Security

EBRD Mobilizes Funding to Strengthen Ukraine’s Energy Security

(IN BRIEF) In response to recent attacks by Russia on Ukraine’s energy infrastructure, the European Bank for Reconstruction and Development (EBRD) has pledged over €300 million in additional funding to support the country’s state-owned energy companies. This commitment, formalized through a memorandum of understanding between EBRD President Odile Renaud-Basso and Ukrainian Prime Minister Denis Shmyhal, aims to facilitate the restoration of generation facilities and infrastructure, the construction of new distributed flexible generation capacity, and ensure a stable electricity supply across Ukraine. The EBRD’s investment plans for the year have been adjusted to address urgent energy needs arising from the attacks, with a focus on developing renewable energy sources and enhancing the resilience of the power transmission system.

(PRESS RELEASE) LONDON, 6-Jun-2024 — /EuropaWire/ — In light of Russia’s recent assaults on Ukraine’s energy infrastructure, the European Bank for Reconstruction and Development (EBRD) has announced its commitment to bolstering funding for the country’s state-owned energy enterprises. Notable recipients of this support include EBRD clients such as Ukrenergo, Ukrhydroenergo, and Ukrnafta.

EBRD President Odile Renaud-Basso formalized this commitment by signing a memorandum of understanding on an emergency response program for energy security with Ukrainian Prime Minister Denis Shmyhal. This memorandum outlines plans for substantial assistance to Ukraine’s energy sector.

As per the agreement, the EBRD aims to mobilize over €300 million in additional funding to aid Ukraine’s energy companies. This funding will be utilized for various purposes, including the restoration of generation facilities and infrastructure, the construction of new distributed flexible generation capacity, and ensuring a consistent and reliable electricity supply throughout the country.

Collaboratively, the EBRD and the Government of Ukraine will identify priority areas within the energy sector to guide the allocation of EBRD support.

Having provided more than €4 billion in financing to Ukraine since the escalation of hostilities with Russia in February 2022, the EBRD has adjusted its investment plans for the current year to address the pressing energy requirements resulting from recent attacks. The development of distributed energy generation, particularly from renewable sources, and enhancing the resilience of the power transmission system are focal points of the EBRD’s engagement with energy sector clients.

Energy security stands as one of the EBRD’s five investment priorities in Ukraine, alongside critical infrastructure, food security, trade, and bolstering the private sector.

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SOURCE: EBRD