Ukrenergo attracted €372 million from the EBRD and the Netherlands

€222 million will be allocated to the purchase of equipment for substations

Ukrenergo attracted €300 million in loan funds from the European Bank for Reconstruction and Development (EBRD), as well as €72 million in grant funds from the Netherlands to restore networks and improve the company’s financial stability. It is stated on the company’s website.

In particular, €150 million of EBRD funds and €72 million of the grant will go towards the purchase of equipment that is urgently needed for substations that were hit by massive Russian missile strikes. The rest of the loan funds of the European Bank for Reconstruction and Development will be used to replenish the company’s working capital, in particular, to fulfill the financial obligations of Ukrenergo in the electricity market in terms of non-payments that arose due to the war.

As Oleg Pavlenko, director of investments of Ukrenergo, noted, financial assistance from international partners will speed up the purchase of critically needed equipment, the restoration of networks damaged by Russian attacks, and the return of electricity to Ukrainians.

As GMK Center reported earlier, a shortage of electricity continues to influence for the work of the Ukrainian iron and steel sector. In particular, ArcelorMittal Kryvyi Rih has temporarily stopped steel production, and Kametstal is assessing the timing of resuming production.

Also, EBRD plans to invest more than €1.5 billion in projects in Ukraine. This was stated by Matteo Patrone, Managing Director of the EBRD in Eastern Europe and the Caucasus. According to him, in 2023, there will be the same level of investments in Ukraine, if not more, depending on how the situation will develop.