EBRD Tosses a €150 Million Dollar Boost Into Ukraine’s Power Grid
In a bold move to keep the lights on amid the ongoing clash with Russia, the EBRD pours an extra €150 million into Ukrenergo.
Why It Matters
- Ukrenergo powers the entire country – think megawatt, not microwatt.
- Renewable energy plants are getting a lifeline, keeping green dreams alive.
- Every kilowatt that swings on the grid helps families stay warm and businesses stay humming.
The Bigger Picture
Since the invasion last year, the EBRD has already handed out a whopping €520 million to Ukraine’s energy sector. This latest injection adds a vital “power‑up” to the lineup.
Grid Status: Roughly Half is Wrecked
Last winter, Russian attacks gutted about half of Ukraine’s transmission network. Utility crews worked overtime to get things back on their feet, but as the temperature drops, the enemy’s drones are back on the offensive.
What This Means for Ukrainians
- Continued “plug‑in” for electricity -> no blackout chaos.
- Renewables keep running, reducing dependence on foreign gas.
- Local economies stay fed, and households stay lit.
In short: the EBRD is ensuring that when the Russians try to cut the power, Ukraine still has a spark to keep going.
Keeping Ukraine Sunny (and Powered) Up in a Time of Turmoil
The European Bank for Reconstruction and Development (EBRD) isn’t just another lender in Ukraine; it’s the team that’s splitting risk with generous donors—think Norway, which has handed out a first‑loss cover guarantee covering up to 48 % of the loan thanks to its slice of the EBRD Crisis Response Special Fund. Since the war kicked off, Norway has pumped in more than €350 million in donor help for Ukraine’s energy sector and its neighbors through the EBRD.
Italy Joins the Party
Italy is rolling out a €10 million grant, on top of the EBRD’s €150 million. That deal is slated to be signed soon by Ukrenergo and the EBRD—a separate handshake from the main one already signed in June at the Ukraine Recovery Conference in London.
More Loans to Power the Nation
- Ukrenergo’s newest loan follows a €200 million back‑up loan in November to Ukraine’s gas giant, Naftogaz (NAK), which helped build up strategic gas reserves for the next winter heating season after the February 2022 Russian invasion.
- Norway backed this as well, underscoring the EBRD’s priority to turbo‑charge Ukraine’s energy security.
“We’re proud to keep Ukrenergo’s engines running in these tough times,” said EBRD President Odile Renaud‑Basso. “The new financing is part of a larger package to keep gas and electricity on track, no matter how hard things get.”
PM Shmygal Lights Up the Update
Prime Minister Denys Shmygal announced that the agreement allows Ukraine to pull €150 million for Ukrenergo’s operations amid the war and a challenging heating season.
He added:
- “This chunk from our partners is a rock‑solid boost for Ukraine’s energy security and keeps the lights on for ordinary citizens.”
- “Alongside the Bank, we’re rolling out projects to fully restore and supercharge the high‑voltage grid.”
- “We’re sincerely grateful to the EBRD, President Renaud‑Basso, and all our collaborators for standing with us to keep the resistance strong on the energy front.”
CEO Volodymyr Kudrytskyi’s Resilience
Ukrenergo’s CEO, Volodymyr Kudrytskyi, said:
“Our partners’ support lets us stay resilient. The survival of the whole country hinges on a functioning energy sector. We truly appreciate the EBRD and all who back our company during this rough patch.”
Why the EBRD Matters
The EBRD is Ukraine’s biggest institutional investor, with a partnership dating back more than thirty years. It’s stepped up its game in wartime—concentrating on:
- Energy security
- Vital infrastructure
- Food security
- Trade
- Support for the private sector
In Oct, the Bank kept its promise, deploying €3 billion in 2022‑23. It had already put out €1.7 billion in 2022, and the 2023 figure is close to €2 billion. In Nov, directors have proposed a €4 billion capital increase to keep the momentum and fund full reconstruction when the time comes.
Governors—voting that Ukraine support should remain the highest priority after the full‑scale invasion—will soon decide on the capital hike, ensuring the EBRD can keep doing its regular work while supporting Ukraine’s big rebuild.
