Ukraine will receive €200 million from the EBRD to support Naftogaz of Ukraine in creating strategic reserves of natural gas and supporting energy security.
Points of attention
- The EBRD is one of the largest institutional investors in Ukraine, having allocated €19.03 billion to 559 projects as of December 2023.
- In June, the EBRD allocated €300 million for the repair of energy facilities and the decentralization of energy-generating capacities after the Russian Federation's massive shelling of Ukrainian infrastructure.
- In addition to the gas sector, the EBRD provides financial support to other sectors, such as transport (Ukrzaliznytsia electric locomotives) and logistics (restoration of the Ukrposhta postal network).
Ukraine will receive €200 million from the EBRD for energy security
As noted, on July 16, Finance Minister Serhiy Marchenko and EBRD Managing Director for Ukraine and Moldova Arvid Turkner signed the corresponding guarantee agreement.
After signing the contract, the parties held a working meeting on the implementation of joint projects and further priorities of cooperation.
As of today, ten joint projects with the EBRD, totalling €2.1 billion, are being implemented in the public sector.
Since the beginning of the full-scale invasion, the EBRD's assistance in all directions has reached almost €4 billion. The bank has significantly increased its funding to Ukraine since Russia launched a full-scale war and intends to continue investing between €1.5 billion and €2 billion annually in Ukraine.
Cooperation of Ukraine with the EBRD
At the end of 2020, the Ministry of Finance of Ukraine reported that 12 joint projects with Ukraine are currently being implemented with the EBRD. The total volume of loans is €2.56 billion. As of December 2023, EBRD funds for these projects amounted to €1.61 billion (62.8% of the total loan amount).
EBRD is one of the largest institutional investors in Ukraine. As of December 2023, the total volume of financing allocated to Ukraine by the bank amounted to €19.03 billion euros within 559 projects.
In January 2024, the EBRD announced it would provide Ukrhydroenergo with a loan of about €200 million under state guarantees. The money will be used for critically needed equipment for the Dnipro and Middle Dnipro HPPs and to support the company's liquidity.
In June, after the Russian Federation's massive shelling of Ukrainian infrastructure, the Prime Minister of Ukraine, Denys Shmyhal, announced that the EBRD would provide €300 million for the repair of energy facilities and the decentralization of power generation capacities.
In June, the EBRD allocated €300 million to replenish Ukrzaliznytsia's electric locomotive fleet and €104 million to restore the Ukrposhta postal network.
