The European Bank for Reconstruction and Development (EBRD) and Ukrnafta, the largest Ukrainian oil company, signed a loan deal for €80 million.

Source: Ukraine’s Ministry of Economy

Details: The initiative envisions installing compact generators with capacities of up to 10 MW apiece in Ukraine's western and central regions, where there is now a serious lack of energy and heat.

Quote: "Since Ukrnafta is the largest producer of oil and gas in the country, as well as the operator of the largest network of gas stations, the company can use its own gas for energy generation and thus reduce the load on the country's energy system," the EBRD said.

The EBRD loan will be backed by investment grants of €9.5 million from the Netherlands and €12.5 million from the United States, which will be channelled through the EBRD Special Fund.

The financing arrangement between the EBRD and Ukrnafta was the first in the framework of the EBRD investment package for Ukraine, totalling more than €1.3 billion.

The package's finances will be used to implement initiatives aimed at restoring energy and transportation infrastructure, developing distributed generation, and improving energy efficiency.

In total, eight projects to help the public and private sectors will be funded through the EBRD investment package.

Background:

• The European Bank for Reconstruction and Development (EBRD) Board of Directors has approved investments in Ukraine totalling more than €1.3 billion.
• The European Bank for Reconstruction and Development (EBRD) stated unequivocally that it would not lend financing to Ukrainian companies, particularly the DTEK energy company, that are controlled by oligarchs.

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