Ukraine will receive EUR 24 million to restore the energy sector from the KfW Development Bank

Today, on 29 December, the Minister of Finance of Ukraine Sergii Marchenko, signed a Guarantee Agreement with the KfW to provide loan financing for the project with NPC Ukrenergo "Improvement of the efficiency of electricity transmission (integration of the Ukrainian IPS into the European integrated power system) III".

The loan of EUR 24 million will be used to restore the energy infrastructure, namely the substation of NPC Ukrenergo, which was heavily damaged due to russian armed aggression.

During his meeting with the Ambassador Extraordinary and Plenipotentiary of Germany to Ukraine Martin Jäger, the Minister of Finance of Ukraine thanked the German Government for its financial assistance and support in maintaining the stable operation of the energy sector of Ukraine.

"With the outbreak of the russian full-scale armed aggression, Ukraine faced serious challenges. However, active cooperation with international partners, in particular Germany and KfW, helped to support the functioning of state institutions, restore the energy sector, and maintain liquidity for SMEs and other social projects. Thanks to the implementation of joint initiatives with KfW, since February 2022, about EUR 133 million of loan and grant funds have been attracted to restore Ukrainian substations," said Sergii Marchenko.

The parties discussed the results of Ukraine's cooperation with international partners in 2023, including the successful completion of the second review of the IMF arrangement and Ukraine's European integration. In addition, special attention was paid to financial challenges and needs for the following year.

For his part, Martin Jaeger noted that Germany's support is unwavering and stressed the need to strengthen cooperation between the two countries in the coming year. 

Additional information

Currently, KfW's portfolio of active projects in Ukraine is the largest in all the years of cooperation. It consists of 7 active investment projects totalling about EUR 295 million, of which 42% have been disbursed as of December 2023.