EIB intends to invest up to 600 mln euros in emergency heating, power projects in Ukraine

MOSCOW. Oct 9 (Interfax) - The European Investment Bank (EIB) has approved an energy rescue plan for Ukraine to finance European Union-backed emergency heating and power projects in the country ahead of the winter season, under which it intends to invest up to 600 million euros in financing for critical energy projects in the public and private sectors, Ukrainian media quoted EIB Group President Nadia Calvino as saying.

"We aim to invest up to €600 million, leveraging the European Union's Ukraine Facility and the contributions of our shareholders, the EU member states," Calvino said following a meeting between EU finance ministers in Luxembourg on Tuesday.

This funding will be supported in part by the EIB's EU for Ukraine Fund and Advisory Program, it said.

The financing will be focused initially on projects that generate electricity and heat using equipment which can be quickly set up to meet the urgent needs of households and businesses, it said.

Furthermore, part of the plan also refers to more medium-term measures aimed at making Ukraine's energy sector more sustainable and resilient, including through pursuing renewable energy projects. It aims to improve energy efficiency in both the industrial and residential sectors, reducing energy consumption and promoting long-term resilience, it said.

The plan will also extend the EIB's ongoing recovery and municipal framework programs, to include energy-related initiatives. It is closely aligned with the Ukrainian government's priorities and follows discussions with its Finance Ministry.

Ukrainian Finance Minister Sergei Marchenko thanked the EIB for recognizing Ukraine's urgent energy needs and promptly addressing them.

As reported, Ukraine Facility is the EU's financial assistance program for Ukraine under which 50 billion euros is to be allocated by the EU in 2024-2027 to finance Ukraine's state budget, stimulate investment and provide technical support in the program's implementation.

The EU for Ukraine Fund (EU4U) was established in 2023 as part of a larger EU for Ukraine initiative. The fund aims to accelerate EIB Global's support for Ukraine's most urgent infrastructure needs and to help sustain the country's economy. It supports critical recovery and reconstruction projects involving both the public and the private sector and improves access to finance for entrepreneurs in Ukraine. To date, the fund has secured over 420 million euros in pledges from the member states.