Germany Pledges €45 Million to Repair Ukraine’s Power Infrastructure

During German Economic Cooperation and Development Minister Svenja Schulze’s visit to Kyiv on May 9th, an agreement focused on Ukraine’s energy system development and expansion was signed as part of ongoing German-Ukrainian energy cooperation.

“Russia’s deliberate attacks on Ukraine’s energy infrastructure underscore the critical role of a functional power supply for the country’s survival and reconstruction,” Schulze stated. “Russia cannot be allowed to succeed in these efforts. Germany stands with Ukraine, and today I’ve reaffirmed our commitment to expanding and upgrading Ukraine’s power grids. This support is both urgently needed and reaching those who need it.”

On behalf of Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), KfW (Germany’s Development Bank) signed a €45 million grant agreement with Ukrenergo, Ukraine’s state energy supplier.

The funding will prioritize repairing war-damaged infrastructure, increasing grid security and efficiency, and ultimately connecting Ukraine to the European grid. This builds upon existing German-Ukrainian energy cooperation, which includes power line and substation modernization, technical expertise, and financing for renewable energy projects for small and medium-sized businesses.

The partnership extends beyond grid improvements, offering technical advice on energy efficiency, training for professionals in sustainable design, and dedicated financing for small and medium-sized businesses in renewable energy projects, such as small wind farms.

Connectivity to the European power grid remains a key objective of the cooperation.

Ukrainian Energy Minister German Galushchenko expressed gratitude to the German government and KfW development bank for their continued support: “It’s crucial that these funds can be used flexibly to restore and strengthen the resilience of our transmission system facilities under enemy fire.”