The European Bank for Reconstruction and Development (EBRD) and the government of Ukraine have agreed to join forces to mobilise a new major financing package to support the country's energy security; the bank will allocate 600 million euros in the form of loans and grants from international partners.

Source: Press service of the EBRD

Details: As part of the Ukraine Recovery Conference, EBRD President Odile Renault-Basso signed three memorandums of understanding with Denys Shmyhal, the Prime Minister of Ukraine, regarding the mobilisation of €200 million for Ukrenergo [the Ukrainian national energy company - ed.], €200 million for Naftogaz [Ukraine's state oil and gas production company - ed.] and €200 million for Ukrhydroenergo [Ukraine's main hydropower generation company - ed.].

The financing package will be provided to Ukrhydroenergo after the recent flood in Kherson Oblast caused by damage to the Nova Kakhovka dam on the Dnipro River. €50 million will be liquidity financing to support the sustainability of the company, and the remaining €150 million is intended for the restoration of two hydroelectric plants near the Zaporizhzhia Nuclear Power Plant.

The financing of Ukrenergo to provide liquidity related to market reforms complements the total amount of €520 million that the bank has already provided since the beginning of the full-scale war.

Funds for Naftogaz will support the company in replenishing strategic reserves. This follows €300 million borrowed last year as part of a €500 million  donor-backed package.

Background: The European Bank for Reconstruction and Development and other participants of the Ukraine Recovery Conference in London signed a statement of intent to cooperate in restoring the private insurance market in Ukraine for wartime resilience and postwar recovery.

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