Ukraine to receive €300 million from the EBRD to support the energy sector
5 June 2024 17:47
Ukraine has signed a memorandum of understanding with the European Bank for Reconstruction and Development, according to which the EBRD will provide €300 million to support Ukraine’s energy sector. This was reported by [Kommersant] reports news agency citing the government’s press service.
The funds will be allocated to state-owned energy companies Ukrenergo, Ukrhydroenergo and Ukrnafta to restore generating capacity, infrastructure and build new decentralised generation.
“This support will help us achieve our goal of ensuring a stable and uninterrupted electricity supply throughout Ukraine,”
– said Prime Minister of Ukraine Denys Shmyhal.
The EBRD has recently pledged to provide €1.5 billion a year to Ukraine until the end of the war.
EBRD
The European Bank for Reconstruction and Development (EBRD) is an international financial institution established in 1991 to promote the development of market economies in the former socialist countries. The EBRD’s current activities are concentrated in Central and Eastern Europe, the former Soviet republics, and the Southern and Eastern Mediterranean.
The EBRD is headquartered in London. The Bank has 72 shareholder states.
The EBRD’s objectives for the recipient countries:
- facilitating the transition to an open market economy and privatisation;
- development of the private and entrepreneurial sector;
- attracting foreign investment;
- assistance in the reconstruction and modernisation of infrastructure.
The Bank finances projects only in countries that are committed to the principles of multi-party democracy, pluralism and market-based economic reforms.
Last year, the EBRD’s investments in Ukraine totalled €2.1 billion, up 23.5% or €0.4 billion compared to 2022. In total, the Bank has already disbursed €3.8 billion to Ukraine since the beginning of the full-scale Russian invasion.
