A high-level delegation from the European Bank for Reconstruction and Development (EBRD), led by Matteo Patrone, Vice President, Banking, visited Kyiv this week to engage in discussions with Ukraine’s government and key energy companies on providing support to the country’s energy sector following the extensive Russian attacks on power generation facilities.
Since the onset of Russia’s full-scale invasion, the EBRD has significantly increased its investments in Ukraine, deploying €4.6 billion since 2022. Of this amount, at least €1 billion has been directed to energy companies, including Ukrenergo, Naftogaz, and Ukrhydroenergo.
Energy security remains a top priority for Ukraine. In response to the recent attacks, the EBRD has revised its 2024 investment plans to address the country’s immediate energy needs. During their time in Kyiv, EBRD officials reviewed the progress of winterization and emergency energy generation projects currently in the works.
The EBRD’s approach is comprehensive, involving collaboration with both state-owned enterprises and the financial sector to support energy infrastructure, construct new flexible power generation capacities, and ensure a stable electricity supply across Ukraine.
On Wednesday, the EBRD launched the Energy Security Support Facility (ESSF), a landmark program designed to enhance Ukraine’s financial sector’s ability to finance energy security initiatives. Through this program, the EBRD will offer guarantees to partner banks, unlocking up to €700 million in financing for local firms, municipalities, and households to invest in generators, decentralized energy generation, storage, and energy efficiency measures. Ukrgasbank and PrivatBank have already signed up for a portfolio-risk-sharing facility, totaling €325 million.
“Our key short-term priority is to support the winterization of the energy sector. We have medium and longer-term plans for this sector as well. To achieve this, we need a conducive environment characterized by a credible corporate governance system and swift decision-making,” said Matteo Patrone, EBRD Vice President, Banking.
The EBRD delegation included Arvid Tuerkner, Managing Director for Ukraine and Moldova, Harry Boyd-Carpenter, Managing Director for Climate Strategy and Delivery, Irina Kravchenko, Deputy Head of the EBRD’s Ukraine team, and Olga Yeriomina, Ukraine energy banker. Over four days, the delegation met with Prime Minister Denis Shmyhal, First Deputy Prime Minister Yulia Svyrydenko, Finance Minister Serhii Marchenko, Energy Minister German Galushchenko, and other key officials and representatives of state-owned energy companies.
The group also held discussions with the National Bank of Ukraine, Ukrainian Railways, Ukrposhta, and PrivatBank. International meetings included talks with EU Ambassador Katarina Mathernova, representatives from the World Bank, International Finance Corporation, European Investment Bank, and EU representatives. They also met with special envoys from France, Italy, and the Netherlands.
The delegation attended an event titled “Demining Ukraine: Resilience, Recovery, and Global Food Security,” focusing on the impact of Russian mines on Ukraine’s food production. Additionally, Arvid Tuerkner participated in the annual Yalta European Seminar (YES), which gathers senior statesmen and analysts.
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