EBRD to grant €372 million for Ukraine’s power grid system repairs

The European Bank for Reconstruction and Development (EBRD) has granted a funding plan that will provide €372 million to assist Ukraine’s electric distribution company, Ukrenergo, in making quick emergency repairs to the power grid system, as well as maintaining the stability of the nation’s energy supply as winter approaches.

The severe damages to Ukraine’s power grid systems were brought on by heavy bombing of civilian power infrastructure.

The EBRD strongly condemns the unlawful and aggressive Russian-led invasion of Ukraine, including the attacks on civilian infrastructure.

The EBRD will provide a €300 million loan with two components that is guaranteed by the government. The purchase of equipment to carry out urgent repairs to the Ukrainian electricity transmission system is budgeted at up to €150 million. Another €150 million will be allocated for capital structure assistance.

Separately, a grant from The Netherlands in the amount of up to €72 million will boost the loan’s emergency repair component. This will be combined into a single €372 million plan to help Ukrenergo with its urgent requirements for transmission infrastructure rehabilitation.

With the assistance of partners and funders, the EBRD is able to make more significant investments in Ukraine. The United States, which has provided $500 million to the EBRD’s Crisis Response Fund and is steadfastly dedicated to tackling the consequences of the war on Ukraine, will back up to 50% of the EBRD’s loan with a funded guarantee.

“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.

EBRD investment for Ukraine supports trade finance to ensure the flow of important products, food security, and crucial infrastructure, in addition to enhancing energy security.
Additionally, the EBRD provides financing to neighboring nations that are sheltering refugees as well as to the local governments who are doing so.

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