The European Bank for Reconstruction and Development (EBRD) has approved a financing package that will bring 372 million euros to support Ukraine’s electricity transmission company, Ukrenergo, to make swift emergency repairs of damages caused by heavy bombings of civilian power infrastructure during Russia’s war on Ukraine and to keep the country’s energy system stable as winter sets in.
The EBRD will make a sovereign guaranteed loan of 300 million euros including two components. Up to 150 million euros is for equipment procurement to implement emergency repairs to the Ukrainian power transmission system. A further 150 million euros consists of capital structure support.
Separately, the emergency repairs part of the loan will be supplemented by a grant for up to 72 million euros provided by the Netherlands. This will be blended into a single 372 million euros package to support the immediate transmission infrastructure restoration needs of Ukrenergo.
“Urgent repairs on Ukraine’s electricity network are an immediate priority for the EBRD. The Ukrainian people and businesses need continued access to electricity to go through the winter,” said EBRD President Odile Renaud-Basso. „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.”
“We are working to commit the loan funds at the earliest opportunity, given that the winter season has already started and the stability of the country’s energy system is strategically important,” said Managing Director for Eastern Europe and the Caucasus Matteo Patrone.
The EBRD has a unique role to play in this crisis. After more than 30 years of promoting economic transition in Ukraine, the Bank’s emergency response to the war focuses on support for the country’s economy today and preparing for reconstruction in future. 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.
