How the EU will support Ukraine in creating gas reserves: details of the new plan
24 February 2025 20:19
The European Commission will help create gas reserves to ensure reliable supplies to Ukraine and the countries of the region. This was reported by "Komersant Ukrainian" with reference to the Ministry of Energy of Ukraine.
The ministry said that the European Commission will help Ukraine finance gas purchases, in particular through the Ukraine Facility together with implementing partners. This will increase gas reserves to ensure security of supply, which will benefit both Ukraine and the entire region.
This is one of the points of the new support package for Ukraine aimed at strengthening our energy system and ensuring its full integration into the European energy market, which was presented by the European Commission leadership on February 24 in Kyiv.
“The use of Ukrainian storage facilities and the creation of sufficient natural gas reserves is strategically important for the reliability of gas supply in the region. Together, we are strengthening the energy security of the whole of Europe, of which Ukraine is and will always be an integral part,” said Energy Minister Herman Galushchenko.
These measures build on over €2 billion in EU support provided over the past three years to enhance the resilience of Ukraine’s energy system. The support will be provided through the Energy Support Fund for Ukraine, the EU Civil Protection Mechanism, as well as humanitarian aid and proceeds from frozen Russian assets.
In addition to financing gas purchases, the package provides for the integration of the Ukrainian electricity market into the EU no later than spring 2027, as well as accelerating investments in renewable energy.
“Only a fully independent energy system can protect Ukraine from current attacks and future pressures. Ukraine’s full integration into the EU energy market will be part of the overall security guarantees that the EU can provide, as well as an effective precondition for recovery, as energy security is key to ensuring the flow of investment across the country,” said Ursula von der Leyen, President of the European Commission.
What is known about the Ukraine Facility?
The Ukraine Facility is a special instrument of the European Union created to provide Ukraine with stable and predictable financial support in the period from 2024 to 2027. The total amount of assistance is up to EUR 50 billion, aimed at restoring, reconstructing and modernizing Ukraine.
The main components of the Ukraine Facility are:
- budgetary support: eUR 38.27 billion, of which EUR 5.27 billion is provided in the form of grants and EUR 33 billion in the form of concessional loans. These funds are intended to support Ukraine’s macro-financial stability, as well as to implement reforms and investments that contribute to the country’s recovery and development;
- investment Fund: eUR 6.97 billion to finance strategic projects in various sectors of the economy, including infrastructure, energy, and digitalization;
- technical and administrative support: EUR 4.76 billion to provide advisory and expert assistance in implementing reforms and enhancing Ukraine’s institutional capacity.
Financial assistance under the Ukraine Facility is disbursed on a quarterly basis, subject to Ukraine’s fulfillment of certain indicators agreed in the program implementation plan. It is important to note that the funds cannot be used to cover military expenditures; they are exclusively for civilian purposes that contribute to Ukraine’s sustainable development and integration into the European community.
In December 2024, Ukraine received €4.1 billion of macro-financial assistance from the EU under the Ukraine Facility, of which €2.6 billion were concessional loans and €1.5 billion were grants. These funds were used to support the state budget and finance priority reforms.
