EBRD to provide Ukraine with €1 billion this year to rebuild its energy sector

The European Bank for Reconstruction and Development (EBRD) plans to provide Ukraine with approximately one billion euros (25 billion CZK) this year to help rebuild its war-damaged energy sector and improve energy resilience. EBRD Vice President Matteo Patrone said this today.

Since the start of Russia’s invasion in February 2022, Ukrainian energy infrastructure has frequently been targeted by Russian missiles and drones. Repeated attacks have damaged electricity generation and transmission facilities and caused power outages.

The EBRD is one of Ukraine’s main lenders. Support for the energy sector will remain a priority this year, Patrone said. Energy security is among the most important areas, and the EBRD has allocated two billion euros to it so far; that amount is expected to rise to around three billion euros by the end of this year, he added.

When Russia intensified its attacks in March 2024, Ukraine lost half of its available generation capacity, according to officials. The country made it through the winter months thanks to mild weather, rapid repairs, and an influx of funding and equipment from Western allies. Ukraine is also seeking to decentralize its energy system as it rebuilds and modernizes, building more solar and wind power plants and small modular gas turbines.

Patrone said renewable energy sources account for about ten percent of Ukraine’s energy mix. The EBRD is working on projects aimed at increasing this share.

Ukrainian Prime Minister Denys Shmyhal also said that the EBRD is working with state-owned energy company Naftogaz on a financial package to help it buy gas for next winter.

Since the start of Russia’s invasion, the EBRD has provided Ukraine with a total of 6.4 billion euros, Reuters reported.