EBRD Provides Kyiv with €50 Million Additional Loan to Address Consequences of War

The European Bank for Reconstruction and Development (EBRD) is providing Kyiv with an additional loan of €50 million, complementing a similar loan granted to the city in 2024.

This was reported by the EBRD press service, as relayed by Ukrinform.

The loan is backed by a European Union guarantee under the Ukraine Investment Framework (UIF), which will cover the first possible losses on the loan up to 25% of the total financing amount.

The EBRD noted that Russian attacks on Ukraine’s energy infrastructure in early 2026 caused serious damage to the capital’s heating and electricity supply systems. As a result, residential buildings, hospitals, schools, kindergartens, and other critical infrastructure facilities were temporarily left without heat and electricity.

The new loan will help Kyiv and Kyivteploenerho cover the funding shortfall arising from war-related destruction, growing demand for utility services, and the limited capacity of the city budget. The financing received will make it possible to ensure uninterrupted heating, electricity, and utility services, retain the enterprise’s staff, and carry out urgent repairs ahead of the heating season.

A portion of the funds will also be directed towards strengthening the capital’s energy resilience — specifically, the installation of decentralised cogeneration units capable of autonomously generating heat and electricity during outages from the main power grid.

In addition, with support from the EBRD and the EU, Kyiv will expand its network of veteran support centres across all districts of the city. This will allow up to 60,000 applications to be processed annually and improve veterans’, their families’, and other affected individuals’ access to rehabilitation, reintegration, employment, and social support services.

The EBRD is the largest institutional investor in Ukraine. Since the start of Russia’s full-scale invasion, the bank has already allocated €10.5 billion to support the Ukrainian economy, primarily in the areas of energy security, private sector development, and the restoration of critical infrastructure.

As Ukrinform previously reported, the state oil and gas extraction company, together with the EBRD, is commencing construction of a modern gas cogeneration power plant with a capacity of approximately 250 MW.

Source: Ukrinform