• Українською
  • German government will provide over EUR 30 million in concessional loan to improve the efficiency of Ukraine's energy infrastructure
    Ministry of Finance of Ukraine, posted 10 June 2024 21:04

    In the framework of the working visit to Berlin (Germany), during a panel discussion with GIZ and KfW “Together for Ukraine - A Longstanding Partnership for Sustainable Development, Economic Growth and Investment Opportunities”, Minister of Finance Sergii Marchenko signed a Guarantee Agreement on behalf of the Government of Ukraine. The agreement provides for a loan of EUR 30.4 million from the German Government through KfW to improve the reliability of Ukraine's energy infrastructure.

    The signing took place in the presence of the Minister of Energy of Ukraine German Galushchenko, European Commission Director-General for Neighborhood and Enlargement Negotiations Gert-Jan Koopman and representatives of the German Government.

    The loan agreement with KfW was signed by the Chairman of the Management Board at NPC Ukrenergo Volodymyr Kudrytskyi and representatives of the KfW Development Bank - member of the Executive Board at KfW Group Christiane Laibach and Director for Eastern Europe, Caucasus, Central Asia Veronica Garcia del Arco.  

    According to the terms of the agreement, the loan term is 30 years, of which the first 10 years are a grace period. The interest rate for the loan is 2% p.a. 

    "We are grateful to KfW for the initiative to finance the enhancement of the efficiency of Ukraine's energy infrastructure and other important projects already being implemented with the support of the German Government. Our cooperation under the signed agreements is a testament to the strength of the partnership and demonstrates exceptional teamwork and unwavering commitment that contribute to the successful implementation of projects aimed at sustainable development and progress," said Sergii Marchenko. 

    "We are sincerely grateful to the German Government and the state-owned German Development Bank KfW for their assistance. The loan funds we received from our partners will be used to renovate one of our substations in the western region. After the modernization, it will be a high-tech automated facility that will meet ENTSO-E requirements for transmission system reliability and network security. The financing will also help us purchase valuable high-tech equipment for substations that were damaged during missile and drone attacks by the enemy," emphasized Volodymyr Kudrytskyi.

    "Reconstruction, rehabilitation and extension of the electricity infrastructure are of highest relevance for the recovery and economic development of Ukraine. Thanks to an increased energy efficiency and the integration of the Ukrainian grid into the European Union, the electricity supply will be stabilized. Therewith, the framework conditions for economic activity and daily life of the Ukrainians in the whole country will be improved," said KfW Executive Board member Christiane Laibach.

    Since the beginning of russia's full-scale armed aggression, the German Government has provided EUR 1.55 billion in budget support, including EUR 1.25 billion in grants and EUR 0.3 billion in loans.