The European Bank for Reconstruction and Development (EBRD) has approved a financing package worth 372 million euros to help Ukraine’s electricity transmission company, Ukrenergo.
The European Bank for Reconstruction and Development (EBRD) has approved a financing package worth 372 million euros to help Ukraine’s electricity transmission company, Ukrenergo. With this funding, Ukrenergo will be able to make quick emergency repairs to its civilian power infrastructure damaged by Russian bombings during the war and keep the country’s energy system stable. This is especially important as winter approaches.
The EBRD offers Ukraine a sovereign guaranteed loan of 300 million euros, comprised of two components. Up to 150 million euros would be invested in purchasing equipment to repair Ukraine’s power transmission system. Another 150 million euros is for financing the capital structure.
Separately, the emergency repairs part of the loan will be accompanied by a grant from the Netherlands of up to 72 million euros. This will be combined into a single 372 million euro package to help Ukrenergo with its immediate transmission infrastructure restoration needs.
The EBRD’s president, Odile Renaud-Basso, stated that the EBRD’s immediate priority is to repair Ukraine’s electricity network as soon as possible because Ukrainians and their businesses rely on electricity supply to get go through the winter. The EBRD is assisting Ukrenergo in making quick emergency repairs to damaged equipment, high-voltage substations, and transmission lines with this critical funding. During the heating season, it will ensure the continued provision of critical power transmission services to Ukrainian households, businesses, and communities.
Matteo Patrone, Managing Director for Eastern Europe and the Caucasus, noted that they are working to commit the loan funds as soon as possible because winter is approaching and Ukraine’s energy system’s stability is strategically important.
In this crisis, the EBRD has a vital role to play. After more than 30 years of promoting economic transition in Ukraine, the Bank’s emergency response to the war concentrates on supporting the country’s economy today and planning for future reconstruction. In addition to enhancing energy security, EBRD funding for Ukraine supports trade finance to maintain food security and critical infrastructure. EBRD funds are also used to assist refugees in neighbouring countries and municipalities hosting them.