News from 2024-05-10 / KfW Development Bank

Further support for energy infrastructure in Ukraine

KfW pledges EUR 45 million on behalf of the German Federal Government

Vertragsunterzeichnung in der Ukraine. Ministerin Schulze und Abteilungsleiterin Veronica Garcia Del Arco und Büroleiter Lorenz Gessner der Entwicklungsbank sind mit den ukrainischen Partnern auf einem Gruppenfoto
Contract signing: commitment of EUR 45 million for the state transmission system operator Ukrenergo. Head of Department Veronica Garcia Del Arco and Head of Office Lorenz Gessner sign on behalf of KfW Development Bank.

Following the intense Russian attacks on Ukraine’s energy infrastructure in recent weeks, KfW has signed a new contract for EUR 45 million with the power grid operator Ukrenergo. The sum is intended to help Ukraine restore, stabilise and protect parts of the electricity grid infrastructure.

Since the start of the war of aggression against Ukraine in 2022, Russia has regularly and deliberately bombed the Ukrainian power grid. In the first winter alone, approximately 40% of it have been damaged or destroyed. In the latest attacks in March 2024, hundreds of rockets and drones, destroyed and damaged power and heating plants and electricity transmission infrastructure, particularly in the east and south of the country, resulting in emergency shutdowns of the power supply for cities and entire regions, as well as power cuts to more than one million households.

Mobile teams in action

Ukrenergo is working with 70 mobile teams and about 1,500 employees to keep the network running and stable under these extreme conditions. KfW is supporting Ukraine in this task on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ).

"Following the massive attacks on energy infrastructure in March this year, we are once again impressed by Ukrenergos’ ability to keep the grid stable and the power flowing despite all the attacks and challenges. This is thanks to the enormous commitment of your employees, but also of the entire Ukrainian population," said Veronica Garcia del Arco, Director for Eastern Europe, Caucasus, Central Asia at KfW.

Veronica Garcia del Arco and Lorenz Gessner, KfW’s Office Director Ukraine, and German Galushchenko, Minister of Energy of Ukraine, signed the new agreement, which is part of a larger energy package that Germany has provided to Ukraine since the 2022 invasion of Russia. The signing ceremony took place in the presence of German Development Minister Svenja Schulze, who had travelled to Kyiv for the occasion.

Schulze promises continued solidarity

Minister Schulze said: "This kind of cooperation is important, both during the war, but also for reconstruction. Because almost everything today needs electricity. Without electricity, Ukraine cannot win the war and master the challenges of reconstruction." She also promised: "Germany stands firmly with Ukraine. We will continue our support as long as it is necessary."

Zwei Personen stehen vor einem zerstörtem Stromnetzverteiler
Ukrenergo staff in front of a transformer hit by a drone in central Ukraine.

An intact, modern network as a goal

The funds, including the current tranche, of almost EUR 300 million in loans and grants, will be used to provide essential equipment and materials, to rapidly repair and modernise the network, to build or repair substations and to achieve greater energy efficiency overall.

In addition, protective elements will be constructed to protect the systems against further attacks. Finally, the investments will help to boost the connection to the European Interconnected Transmission Network and strengthen the resilience of the population. After all, a reliable supply of energy is crucial: to ensure that the basic needs of the population in Ukraine - such as health care or the operation of schools and other facilities - can be guaranteed and that the economy keeps running.

Further Information on KfW’s cooperation with Ukraine: Support for Ukraine – today and tomorrow


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