Ukraine to receive extra financing for Ukrenergo, gas purchases – Energy Minister after meeting with EBRD

Ukraine will receive new financing in the energy sector, specifically a EUR 90 million loan for NPC Ukrenergo and EUR 160 million for gas purchases, which will be reallocated from other projects, First Deputy Prime Minister for Energy Denys Shmyhal announced following a meeting with EBRD First Vice President Gregory Guyett, attended by representatives of Ukrainian state energy companies.

"Together with key partners, we are preparing to sign new projects in the public sector, including a EUR 90 million loan for Ukrenergo, as well as a decision on the temporary reallocation of EUR 160 million for natural gas purchases," Shmyhal wrote on Telegram on Tuesday.

The Energy Minister added that cooperation with the EBRD in the energy sector currently includes 13 projects, among them support for gas production, restoration of power grids and hydroelectric plants, and strengthening nuclear safety.

According to him, the meeting addressed each of these areas, as well as the overall situation in Ukraine’s energy system and the consequences of today’s Russian attack, which deprived the country of part of its electricity generation capacity.

Shmyhal noted that particular attention was paid to infrastructure protection, the resources needed for restoration, and the issue of gas imports to meet demand this winter and next.

He pointed out that the EUR 500 million previously allocated by the EBRD to Naftogaz of Ukraine for gas purchases, along with an additional EUR 85 million from Norway, made it possible to secure the necessary volumes of resources.

As reported, the World Bank will provide $40 million to NPC Ukrenergo for the purchase of equipment needed to restore the energy system after Russian attacks, Shmyhal said following a conversation with World Bank Managing Director for Operations Anna Bjerde.