EIB launches €600m Ukraine Energy Rescue Plan

The European Investment Bank (EIB) has announced the Ukraine Energy Rescue Plan, an initiative to extend EU support for Ukraine’s heavily damaged energy infrastructure ahead of the winter season.

As part of the plan, the EIB expects to invest up to €600 million ($657.9 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 that 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.

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Furthermore, part of the plan also refers to more medium-term measures aimed at making Ukraine's 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 in a release: “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.”