EU Allocates €100 Million to Ukrainian National Energy Company for Restoration

On July 19, the European Union allocated €100 million in grant funds to Ukrenergo, a Ukrainian National Energy Company (NEC), for restoration and protection efforts. The grant agreement was signed by Volodymyr Kudrytskyi, chairman of the board of NEC Ukrenergo, and Lorenz Gessner, head of the representative office of the German state development bank KfW in Ukraine. The signing was witnessed by Deputy Minister of Energy Roman Andarak and members of the EU Delegation to Ukraine.

The European Commission has authorized KfW to allocate the funds from the EU’s “Ukraine Investment Facility” to Ukrenergo. These funds will finance and implement several priority energy projects, including:

• Modernization of high-voltage substations in western Ukraine and construction of interstate interconnectors linking Ukraine with the continental European energy system.

• Repair and restoration of equipment damaged or destroyed by Russian shelling at high-voltage substations, as well as the purchase and delivery of new equipment.

• Measures to enhance the physical protection of Ukrenergo substations.

This grant represents the second phase of the targeted program “Reconstruction and Restoration of Ukraine’s Electricity Transmission Infrastructure.” The first phase, involving €15 million, was agreed upon during the Berlin Conference on the Reconstruction of Ukraine on June 11.

Since the onset of the Russian full-scale invasion, Ukrenergo has secured €1.5 billion in international aid, including €324 million with the support of KfW.

“We are sincerely grateful to our international partners for their contribution to creating a more energy-efficient, modern, and protected energy grid in Ukraine, ensuring the stable synchronous operation of the Ukrainian and European energy systems,” said Kudrytskyi.