PrivatBank and Ukrgasbank Lead the Way in Joining EBRD’s Energy Security Support Facility

Ukrgasbank and PrivatBank have become the first Ukrainian banks to participate in the European Bank for Reconstruction and Development’s (EBRD) Energy Security Support Facility (ESSF), a key initiative aimed at enhancing access to financing for energy security projects in the country. The ESSF is designed to strengthen Ukraine’s energy resilience amidst the ongoing war and escalating Russian attacks on its energy infrastructure.

The EBRD is extending portfolio-risk-sharing facilities to both banks, with Ukrgasbank receiving €150 million and PrivatBank €175 million. These funds will be directed towards financing small and medium-sized enterprises (SMEs), medium-sized corporate clients, regional municipalities, and private households for decentralised energy generation and energy efficiency improvements. The measures are critical to Ukraine’s energy security.

Through the ESSF, the EBRD will share the risk of €700 million in sub-loans, supporting investments in energy generation, storage, and efficiency. The initiative aims to help Ukrainian businesses, state-owned enterprises, and households strengthen their energy security and adapt to the medium-term impacts of climate change.

This programme comes as Ukraine faces significant challenges due to the destruction of more than 9,000 MW of energy-generating capacity from Russian attacks, threatening the country’s energy supply and business operations.

In response, the EBRD is working with both public and private sector clients, having already provided over €1 billion in financing for Ukraine’s state-owned energy companies. It has committed an additional €300 million to support decentralised energy generation projects, creating a more resilient energy network less vulnerable to attacks.

Ukrgasbank and PrivatBank are leading institutions in Ukraine’s financial sector. Ukrgasbank, the country’s fifth-largest state-owned bank, serves 1.5 million individual and 87,000 corporate clients across 215 branches. PrivatBank, the largest state-owned bank, operates a network of 1,100 branches and 5,000 ATMs, focusing on retail and SME customers.

The EBRD remains Ukraine’s largest institutional investor, having deployed over €4.5 billion since 2022. A further €4 billion capital increase has been secured to continue supporting the country’s economy during wartime and for future reconstruction efforts.