"The EBRD remains a key partner in supporting Ukraine's energy security", - Sergii Marchenko

On 12 December, Minister of Finance of Ukraine Sergii Marchenko met with the Managing Director of the European Bank for Reconstruction and Development (EBRD) for Eastern Europe and the Caucasus Matteo Patrone.

The meeting was also attended by Deputy Minister of Finance of Ukraine Olga Zykova and Deputy Minister of Finance of Ukraine Alexander Kava. The Bank was represented by Deputy Head of the EBRD in Ukraine Iryna Kravchenko and Deputy Director of the EBRD Board of Directors Artem Shevalev.

The parties discussed current cooperation, including increasing the Bank's investments in Ukraine to support the real economy, as well as priority sectors for future initiatives and improving the mechanisms of existing joint projects.

The participants of the meeting also discussed preparations for the next meeting of the Multi-Donor Coordination Platform, in particular, plans to finance the State Budget deficit in 2024. 

The Minister of Finance of Ukraine thanked the Bank's representatives for their significant contribution to financing critical expenditures in the energy sector.

“Since the beginning of the russian full-scale invasion, the EBRD’s support has been one of the key pillars for the Ukrainian energy sector. Thanks to the financial resources mobilised by the Bank to maintain liquidity and stability of the main enterprises of the fuel and energy complex of Ukraine, namely NPC Ukrenergo and NJSC Naftogaz, the Ukrainian energy sector managed to maintain the level of energy security in the country, prepare for the heating season in time and withstand the russian energy terror," said Sergii Marchenko. 

The EBRD's contribution to ensuring the smooth running of the 2022/2023 heating season and timely preparation for the new 2023/2024 heating season by financing the purchase of imported natural gas was a significant support for Ukraine. The funds consist of a EUR 300 million loan guaranteed by the G7 countries and a EUR 188.7 million grant from the Government of Norway.

In this context, the Minister of Finance noted that, given the current situation in the country, attracting new investments remains a particularly important issue: "The rapid recovery of Ukraine depends to a large extent on the development of the private sector, and therefore there is a significant need for foreign investment. In turn, the Government of Ukraine, together with international partners, is actively working to create favourable conditions for investors."

The EBRD's Managing Director for Eastern Europe and the Caucasus, Matteo Patrone, noted that the main areas of cooperation next year will be support for the private and public sectors, in particular in the areas of infrastructure and energy, food security and trade. 

The Ukrainian side also expressed its hope that the first review of the EBRD's portfolio of joint projects in two years will be held in December, which will help to improve the efficiency of project implementation and use of the loan funds raised within the framework of joint ongoing initiatives.

Additional Information 

As of December 2023, the total amount of EBRD financing disbursed to Ukraine over the entire period of cooperation is EUR 19.03 billion. 

In 2022-2023, the EBRD's revolving credit line was used by Naftogaz to purchase EUR 524.4 million of imported natural gas.

• Special capital support project for NPC Ukrenergo (EUR 150 million loan from the EBRD under the state guarantee), which aims to cover critical operating costs of NPC Ukrenergo and ensure stable and uninterrupted electricity transmission services throughout Ukraine, as well as to increase the country's energy security and stabilize the Ukrainian electricity market in times of war.

• The project "Emergency Restoration of Ukrhydroenergo" (EBRD loan - EUR 200 million under the state guarantee), the implementation of which will support the sustainability of the Company's operations and assist in restoring the operational reliability and efficiency of hydroelectric power plants affected by the military aggression of the Russian Federation against Ukraine.

• Project "Financing of Strategic Gas Reserves of NJSC Naftogaz of Ukraine" (EUR 200 million loan from the EBRD under the state guarantee). The aim of the Project is to support Naftogaz of Ukraine in creating strategic gas reserves, which are critical for ensuring Ukraine's energy security and the sustainable passage of the 2023/2024 and 2024/2025 heating seasons.