EU gives Ukrenergo grant of 100 mln euros to modernize energy infrastructure

MOSCOW. July 22 (Interfax) - Ukrainian energy system operator Ukrenergo and German state development bank KfW have signed a grant agreement on the allocation of 100 million euros in European Union funds, Ukrainian media reported the power company as saying on Telegram.

The agreement was signed by Ukrenergo CEO Vladimir Kudritsky and the head of KfW's office in Ukraine, Lorenz Gessner in the presence of Ukrainian Deputy Energy Minister Roman Andarak and members of the EU delegation in Ukraine.

The European Commission authorized KfW to provide the funding under the EU's Ukraine Investment Facility to finance a number of energy projects, including the modernization of high voltage substations in western parts of Ukraine, development of international interconnectors with the energy system of continental Europe, repair and restoration of damaged equipment at high voltage substations, and the purchase and delivery of new equipment.

Some of the funding will also be used for measures to strengthen physical protection of Ukrenergo substations.

This grant is the second phase of the "Reconstruction and Restoration of Ukraine's Electricity Transmission Infrastructure" project, Ukrenergo said. The company and KfW signed an agreement on the first phase, with 15 million euros in funding, at the Berlin conference on Ukraine's restoration in June.

Ukrenergo has raised a total of 324 million euros with KfW's support and 1.5 billion euros of international aid overall since the start of the conflict in the country.