Ukraine: the EU steps up support for Kyiv – 50 million from the EBRD for energy services

Brussels – In addition to the €90 billion loan intended to support Ukraine, the first tranche of which was paid out just a month ago, the European Union continues to step up its financial support for Kyiv. The latest intervention comes from the European Bank for Reconstruction and Development (EBRD), which today (29 July) approved a new €50 million loanto ensure the continuity of essential services in the Ukrainian capital, which has been severely affected by Russian attacks on energy infrastructure. Since 2022, the EBRD has allocated €10.5 billion to Ukraine, becoming the country’s leading institutional investor. 

The funding, which doubles the resources already allocated by the European Bank in 2024 for Kyiv, will be provided to the municipal company Kyivteploenergo (KTE), which is responsible for supplying heating and electricity to the city. The aim is to support the company in meeting its urgent liquidity needs resulting from war damage, increased service demand, and the municipality’s limited financial resources. 

The loan will enable KTE to keep essential services running, retain staff and carry out urgent repairs ahead of the winter season. The funding will also help strengthen the capital’s energy resilience by installing decentralised combined heat and power units that can operate even in the event of national grid disruptions. The operation is backed by an EU guarantee under the Ukraine Investment Framework, which will cover 25 per cent of the financing through a first-loss risk coverage mechanism.