Finland will provide €28.5 million ($33.2 million) to support new power generation in Ukraine, with Finnish company Wärtsilä selected to supply the equipment, Finland’s Ministry of Foreign Affairs said on 13 August.
Ukraine’s power system has been repeatedly damaged by Russian attacks, leaving the country facing each winter with reduced generation capacity and a heightened risk of electricity and heating disruptions. Strengthening distributed generation is therefore a key part of keeping essential services running when further strikes hit the energy grid, as they are expected to do ahead of the 2026-27 winter season.
The total value of the power plant technology is €46.5 million, with Ukraine covering the remaining cost. The plants will be manufactured in Vaasa, Finland, with the Ministry saying it will support Finnish jobs and exports while adding generation capacity to Ukraine’s war-damaged energy system.
Power generation for Ukraine’s winter
Ukraine’s state energy company Ukrnafta is purchasing the power plants to strengthen electricity production, with the need particularly acute ahead of another winter under Russian attacks.
“Reliable energy production is vital, particularly in winter months, when Russian strikes on energy infrastructure have made day-to-day life in Ukraine difficult,” Finland’s Ministry of Foreign Affairs said.
Russia has repeatedly targeted Ukraine’s electricity generation, transmission, gas, and heating infrastructure since the full-scale invasion. The attacks have caused widespread blackouts and damaged or destroyed large parts of Ukraine’s generation capacity.
Previous winters have shown the consequences. Russian strikes have repeatedly caused rolling blackouts, while damage to heating infrastructure has threatened access to heat and water during freezing weather.
Ukrainian officials have warned that the coming winter could be more difficult than previous ones, as Russia is expected to again target Ukraine’s energy, heating, and water infrastructure. Russia has already intensified attacks on Ukrainian civilians and civilian infrastructure this summer, raising concerns that the campaign against essential services could escalate further during the winter months.
Finnish technology heads to Ukraine
Wärtsilä Finland Oy will manufacture the power plants in Vaasa.
Finnish Foreign Trade and Development Minister Ville Tavio said the project combines support for Ukraine with Finland’s energy-sector expertise.
“Finland has world class energy sector expertise that can benefit Ukraine’s reconstruction efforts,” Tavio said. “I am pleased that Finnish technology and Finnish workers are playing a part in strengthening the security of Ukraine’s energy supply.”
How Finland is financing the project
The €28.5 million Finnish contribution comes through the Finland–Ukraine Investment Facility, which supports public investments in Ukraine using Finnish technology, expertise, and services.
Finland’s funding will cover the interest costs and capital of the investment loan Ukraine will take out for the project. Finnish export credit agency Finnvera is providing a 100% export guarantee for the loan.
The project combines immediate energy support for Ukraine with Finnish financing, technology, and manufacturing capacity.
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