The cooperation between the Ministry of Energy of Ukraine and the United States Agency for International Development (USAID) through the Energy Security Project (ESP) allows implementing projects to reform the energy sector, integrate Ukrainian energy markets into European ones, and strengthen Ukraine’s energy security in general.

In 2023, a number of meetings were held at the level of the leadership of the Ministry of Energy and USAID to discuss areas for deepening and expanding cooperation. In particular, in January, Minister of Energy of Ukraine German Galushchenko met with USAID Administrator Samantha Power to discuss assistance to Ukraine’s energy sector. The important role of USAID in restoring Ukraine’s energy sector and preparing for winter was also discussed during a meeting between German Galushchenko and USAID Deputy Administrator Isobel Coleman in Washington.

“We thank our USAID partners for their long-term cooperation and real contribution to strengthening Ukraine’s energy security. Assistance to the energy sector, procurement of equipment, development of distributed generation, expert support and cooperation for the integration of energy markets are all important components of our cooperation, which allow us to develop and reform the Ukrainian energy sector,” said Minister of Energy of Ukraine German Galushchenko.

Starting in April 2022, the USAID Energy Security Project, in addition to its core activities, has been acting as an independent procurement agent for the Ukraine Energy Support Fund, helping to purchase critical equipment to meet the urgent needs of Ukraine’s energy sector.

ESP provides this assistance free of charge, working in close cooperation with the Energy Community Secretariat and the Ministry of Energy.

In particular, from 1 January to 30 November 2023, USAID ESP concluded more than 130 agreements worth more than EUR 100 million for the procurement of equipment for the Ukrainian energy sector on behalf of the Ukraine Energy Support Fund and provided equipment to 20 Ukrainian companies.

USAID has also recently become a sponsor of the Ukraine Energy Support Fund, formalising its own commitment to a USD 25 million grant contribution.

USAID ESP also assisted the Ministry of Energy in auditing Ukrainian energy legislation for compliance with EU energy legislation. ESP experts participated in the development of the Law of Ukraine No. 3141 “On amendments to certain laws of Ukraine on prevention of abuse in wholesale energy markets”. The project experts also developed recommendations for amendments to the Law of Ukraine “On the electricity market” and the Tax Code of Ukraine, as well as recommendations for the draft law on capacity allocation and congestion management (CACM).