Ukrainian govt allocates funds for rebuilding energy sector
MOSCOW. July 31 (Interfax) - Ukrainian Prime Minister Denis Shmygal has emphasized the importance of timely implementation of measures to prepare the energy sector for the autumn-winter period, noting that "there are funds for this".
"For restoring, repairing and protecting the energy facilities the State Agency for Restoration alone has been allocated UAH 10 billion. We are also receiving U.S. assistance for $897 million, and these are funds for power generators, gas turbine power plants, and power transformers. The European Union's Ukraine Energy Support Fund is working, under which we have already received 166 million euros. The funds are available, it is important to carry out all planned activities on time," Ukrainian media quoted Shmygal as saying at a meeting of the Congress of Local and Regional Authorities under the Ukrainian president that took place in Ivano-Frankovsk on Sunday.
Shmygal identified three challenges: preparing for winter, executing budgets at all levels, and fast-tracking integration into the EU and NATO.
The headquarters set up by the government to prepare for the heating season has been operating since May, he said. Before the heating season starts, the Energy Ministry has a clear goal to add 1.7 GW of capacity to the power system. The ministry also plans to add another 1.2 GW to the system by the end of the year, between November and December.
Ukrainian gas storage facilities are holding 11.7 billion cubic meters of gas (80% of the planned volumes), while 1.5 million tonnes of coal out of the planned 1.8 million tonnes is stored in the storage facilities, Shmygal said.
"The second challenge is to fulfill the budgets at all levels, financial sustainability, and giving priorities to expenditures. In the first half of 2023, state budget expenditures amounted to UAH 1.786 trillion. Of these funds, UAH 819 billion is provided for security and defense. In total, UAH 264 billion was allocated for social benefits. Healthcare, education, critical infrastructure, and rapid recovery are the next priorities of budget spending. Everyone should treat very responsibly the projects that are funded from the budgets of different levels. This concerns the local authorities, in particular," Shmygal said.
The third challenge is fast-track the integration into the EU and NATO, he said. The European Commission appreciates the progress of Ukrainian reforms in implementing the seven recommendations, he said. "We are doing our utmost to start pre-accession talks on EU membership by the end of the year. At the same time, we are preparing the so-called 'Plan for Ukraine' as part of the Ukraine Facility program, which was announced by the European Commission," Shmygal said.