EBRD lends €150 million to support provision of electricity to Ukraine

On 18 December, the European Bank for Reconstruction and Development (EBRD) extended a €150 million sovereign-backed loan to Ukraine’s electricity transmission company, Ukrenergo, as part of a major package to support Ukraine’s energy security despite the full-scale war being waged by Russia. 

Norway provided a first loss risk cover guarantee for up to 48 per cent of the loan. Italy will provide a grant of around €10 million in addition to the EBRD’s €150 million, to be signed between Ukrenergo and EBRD separately soon.

The funding for Ukrenergo will support the continued functioning of the power transmission infrastructure and the uninterrupted operation of Ukrainian electricity generators, including renewables, as well as help to provide power supply to the Ukrainian economy and households. It adds to a total package of €520 million already provided by the EBRD since the Russian invasion last year.

Ukrenergo is key to the functioning and further development of Ukraine’s power infrastructure, which includes renewables, vital to support the country’s energy independence. 

According to the EBRD, around 50 per cent of Ukraine’s transmission grid was damaged or destroyed by Russian attacks last winter. While utility workers have since restored the operational condition of Ukraine’s electricity grid, as winter temperatures drop, targeted Russian attacks are resuming.

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Press release