Ukrenergo, the Ukrainian state-owned energy company, signed a €15 ($16) million grant agreement with the German state-owned development bank KfW, according to Volodymyr Kudrytskyi, the head of Ukrenergo.
This comes as Ukraine reported to have lost 70% of its generation capacity due to Russian strikes, which have caused $12.5 billion in damage. With only 14 out of 36.7 gigawatts available, Ukraine faces severe energy shortages.
The funds, provided by the European Union (EU) through KfW, will be used to purchase critical equipment and restore high-voltage substations damaged by Russian attacks on energy infrastructure, according to Kudrytskyi.
The grant agreement was signed in Berlin during the Ukraine Recovery Conference 2024 by Kudrytskyi and Christian Laibach, a member of the KfW Executive Board.
The company has secured a total of €45.4 ($48.7) million in international support over the past two days to restore Ukraine’s energy system.
He emphasized that this generous contribution from international partners will help ensure the energy security of Ukraine and Europe, enabling them to stand together against “Russian terrorism” targeting Ukraine’s energy system, which is an integral part of the EU’s energy system, according to Kudrytskyi.
In addition to the grant agreement, Ukrenergo signed a new loan agreement with KfW for €30.4 ($32.6) million, which will be used to modernize the company’s facilities and strengthen synchronous operation with the European Network of Transmission System Operators for Electricity (ENTSO-E), which represents 40 electricity transmission system operators from 36 countries across Europe.
Since the beginning of Russia’s full-scale war, Ukrenergo secured a total of €224 ($240.5) million in international support from KfW.
Ursula von der Leyen also announced at the Ukraine Recovery Conference that the EU will provide €500 million for energy infrastructure repairs in Ukraine, along with 1,000 solar panels and generators.
Read more:
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