Strategic equipment reserves and new projects: what was discussed at the EU energy talks
17 March 20:10
Ukrainian Energy Minister Denys Shmyhal announced that, following negotiations with international partners in Brussels, Ukraine will establish a Strategic Reserve of Energy Equipment, according to [Komersant].
The reserve will be formed within the framework of the Ukraine Energy Support Fund. Its goal is to help energy companies stockpile in advance the equipment needed for repairs during potential attacks on the power grid.
What is the reserve’s budget?
According to the minister, the available budget for the new mechanism already amounts to 197 million euros.
“Thanks to this mechanism, Ukrainian companies will be able to stockpile energy equipment before next winter and, if necessary, use the accumulated reserves for repairs,” Shmyhal said.
The reserve is expected to allow for faster restoration of damaged infrastructure should it come under attack again.
How much funding does Ukraine need
During the talks, the parties also discussed the overall financial needs of the energy sector to prepare for the upcoming heating season.
“We have agreed with our partners on Ukraine’s financial needs to prepare for next winter. Specifically, we are counting on 5.4 billion euros,” the minister stated.
These funds are to be used for the restoration of energy facilities, the purchase of equipment, and strengthening the system’s resilience.
Negotiations with European partners
The Ukrainian delegation held meetings with representatives of the European Commission.
In particular, negotiations took place with:
- Kaja Kallas
- Marta Kos
- Dan Jørgensen
Consultations were also held with representatives of the governments of other countries that support the restoration of Ukraine’s energy sector.
Other energy sector recovery projects
In addition to creating an equipment reserve, Ukraine is working to expand international support programs.
In particular, there are plans to expand the joint project with the World Bank—Repower—which aims to restore damaged heating systems in Ukrainian cities.
The program is designed to help communities modernize their infrastructure and restore it more quickly after attacks.
