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Ukraine Energy Support Fund: Energy Ministry approves 107 mln euros support package requested by Ukrainian energy companies

Ukraine’s Ministry of Energy approved support requests by 30 energy companies under the Ukraine Energy Support Fund for the procurement of essential energy equipment at an estimated value of over 107 million euros, the Energy Community announced last week.

The Ministry’s decision triggered the procurement procedure for the requested items, including power transformers, generators, valves, pumps, pipes, oil transformers, surge arresters, batteries, disconnectors, wires, insulators and circuit breakers, to be conducted by an independent procurement agent.

Before procurement on the global markets can begin, the Ministry of Energy of Ukraine needs to identify companies eligible for support under the Fund, approve their support requests and prioritise them in line with objective and predetermined criteria. The procurement of the requested items is conducted by an independent procurement agent on behalf of the Ukrainian energy companies eligible for funding, after which disbursements are made to vendors and suppliers by the Energy Community Secretariat as the fiduciary of the Fund.

The Ukraine Energy Support Fund was set up by the Energy Community Secretariat in April 2022 as a platform for governments and international financial institutions to provide emergency financial support to Ukraine’s energy sector.

The Energy Community Secretariat maintains a database of prospective suppliers of equipment, fuels and services that may be contacted by independent procurement agents if their offer matches the needs of Ukrainian energy companies. As stated in a press release by the Secretariat, potential suppliers, including those based in Ukraine, are invited to present their portfolios via the website of the Energy Community.

Last month, Deputy Minister of Energy for European Integration, Yaroslav Demchenkov, urged Ukrainian businesses to participate in tenders for the supply of equipment within the framework of the Energy Support Fund.

In addition, President Volodymyr Zelensky recently signed new Laws on donations of emergency energy equipment, materials and other items arriving in Ukraine under the umbrella of the Energy Community to be exempt from VAT and other taxes.

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