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Energy rescue plan approved to finance EU-backed emergency heating and power projects for Ukraine ahead of winter season

8 October 2024
EIB
  • EIB President Nadia Calviño presented the Ukraine Energy Rescue Plan to EU finance ministers at their meeting in Luxembourg today.
  • The plan foresees up to €600 million in EU-backed financing for critical energy projects in the public and private sectors to meet urgent heating and power needs of wartime Ukraine.
  • The rescue plan will also support new green energy initiatives, including for energy efficiency and renewable energy, to help rebuild Ukraine’s energy infrastructure and bring the country closer to the European Union.

Today, European Investment Bank President Nadia Calviño announced the Ukraine Energy Rescue Plan, an initiative to extend EU support for Ukraine’s heavily damaged energy infrastructure due to Russia’s ongoing war, ahead of the winter season, aimed at supporting the resilience of the country and its people. 

Briefing EU finance ministers in Luxembourg today, President Calviño outlined that as part of the plan, the EIB expects to invest up to €600 million in financing for emergency energy projects across the public and private sectors. This funding will be guaranteed under the European Union’s Ukraine Facility and in part supported by the EIB’s EU for Ukraine Fund and Advisory Programme. It will help restore and strengthen Ukraine’s energy infrastructure while also aligning it with EU standards, further advancing the country’s integration into the European Union.

Initially the emphasis will be on making finance available for projects that generate electricity and heat using equipment which can be quickly set up to meet the urgent needs of households and businesses. The plan focuses also on projects to protect key electricity substations with shelters. It aims to urgently restore electricity and heating to prevent disruptions to critical services such as hospitals, schools and water supplies, ensuring uninterrupted operations for households, businesses and public services.

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

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

EIB Group President Nadia Calviño said: “The Ukraine Energy Rescue Plan is a crucial measure to ensure that millions of Ukrainian citizens and businesses have the electricity and heat they urgently need to face the coming winter. 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. The EIB is also strengthening Ukraine’s energy infrastructure for the future. Together with our EU partners, our support is unwavering, working hand-in-hand with Ukraine in this critical phase and for the better times ahead.”

“While addressing Ukraine’s immediate energy needs, the plan also invests in the country’s green transition through energy efficiency and renewable projects. This will not only help Ukraine recover but also accelerate its path to a sustainable energy future and deeper integration with the European Union, aligning the country with EU standards for a stronger, shared future,” added EIB Vice-President Teresa Czerwińska, who is in charge of the Bank's operations in Ukraine and will present the rescue plan to the Steering Committee of the Ukraine Donor Platform this week in Rome.

Ukraine’s Minister of Finance Sergii Marchenko said: “I am grateful to the EIB for recognising Ukraine’s urgent energy needs and for the swift decision that has been taken. Russia’s relentless attacks on our energy infrastructure place immense pressure on our country. The EIB’s plan to support Ukraine’s energy sector is yet another crucial form of assistance for us in restoring power and heating to essential services like hospitals and schools. This will ensure that our people have access to the energy they need to withstand the potential challenges ahead.”

European Commission Executive Vice-President for an Economy that Works for People Valdis Dombrovskis said: “This financing from the EIB, also backed by the EU budget, comes at just the right moment to allow Ukraine’s authorities to restore power and heating for basic services like hospitals and schools, while guarding against further supply disruptions given Russia’s brutal attacks on its energy infrastructure. It will help Ukraine to prepare for the winter season, make its energy network more reliable and resilient, and improve its sustainable energy efficiency as the country aligns with EU standards on its way to eventual accession. The European Union remains committed to supporting Ukraine and its people.”

Background information

The Ukraine Facility is the European Union’s financial assistance programme for Ukraine. During the 2024-2027 period, €50 billion will be allocated by the European Union to finance the state budget, stimulate investment and provide technical support in the implementation of the programme.

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 in pledges from the Member States.

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Reference

2024-363-EN