UK to provide $30 mln under IFC program to support Ukraine's energy security

MOSCOW. June 23 (Interfax) - The United Kingdom will contribute $30 million to the International Finance Corporation's (IFC) Economic Resilience Action program to support Ukraine's energy security.

IFC announced the signing of this agreement on the sidelines of the Ukraine Recovery Conference in London along with other agreements concluded as part of the program to finance and support various operations of Ukraine's private sector, Ukrainian media said, citing an IFC press release.

IFC expects the UK's funding to mobilize a further $100 million in investments to support renewable energy and energy efficiency in Ukraine.

Energy is one of Ukraine most impacted sectors with reconstruction needs estimated at $47 billion, the corporation said.

IFC, which is a division of the World Bank Group, launched a program to support Ukraine's private sector in December 2022, according to the press release. It is a $2-billion program, which includes financing from IFC's own account alongside guarantees, concessional loans and grants from donor governments. The agreements announced on June 22 also mark the first financial contributions from the United Kingdom and the United States to the program.

As reported, the Ukrainian Energy Ministry and the UK Foreign, Commonwealth and Development Office signed an energy partnership memorandum on the sidelines of the Ukraine Recovery Conference, paving the way for the creation of a new entity, the Green Energy Challenge Fund, with a budget of 62 million pounds.

The UK government said on its website that 25 million pounds of this amount would go to IFC's Ukraine Economic Resilience Action platform.