On 23 November, the European Bank for Reconstruction and Development (EBRD) approved a financing package that will bring €372 million to support Ukraine’s electricity transmission company, Ukrenergo.
This funding will help Ukrenergo make swift emergency repairs of damages caused by heavy Russian bombings of civilian power infrastructure during Russia’s war on Ukraine, and to keep the country’s energy system stable as winter sets in.
The package will be blended from funding coming from two sources.
The EBRD will make a sovereign guaranteed loan of €300 million including two components. Up to €150 million is for equipment procurement to implement emergency repairs to the Ukrainian power transmission system. A further €150 million consists of capital structure support.
Separately, the emergency repairs part of the loan will be supplemented by a grant for up to €72 million provided by The Netherlands.
“We are working to commit the loan funds at the earliest opportunity, given that the winter season has already started and the stability of the country’s energy system is strategically important,” said EBRD Managing Director for Eastern Europe and the Caucasus Matteo Patrone.
The EBRD also announced it would provide a €50 million guarantee to support lending to critical industries in Ukraine. The EBRD’s risk-sharing instruments will help local financiers lend to Ukrainian private companies operating in such industries as primary agriculture and agricultural services, food processing, transport and logistics, retail, and pharmaceuticals.
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