EBRD to provide Ukrenergo with a €90M loan to help rebuild power substations damaged by the war

The goal of the lending is to reconstruct selected substations in Ukraine, purchase reserve stocks of electrical equipment, and procure equipment for interconnection lines, the EBRD said.

The project has passed its final review and is awaiting approval by the bank’s board.

“Subject to availability, the loan is expected to be co-financed by investment grants from international donors totaling up to 60 million euros (about $65 million),” the EBRD said.

According to the bank, the purpose of the 150 million-euro project (90 million euros + 60 million euros), or about $162 million, is to strengthen the resilience of the transmission system amid ongoing attacks and to ensure uninterrupted electricity supply to households and businesses across the country.

The current loan will be used to reconstruct three existing substations and complete the construction of one new substation in Ukraine, a project initially financed by the bank in 2014.

Since February 2022, the EBRD has provided Ukrenergo with three loans as part of ongoing support, including emergency capital-structure assistance and urgent investment aimed at restoring the transmission network after severe damage from Russia’s invasion.

According to Interfax-Ukraine, citing Energy Committee member Maksym Khlapuk, as of June 2025 the total amount of loan funds under agreements between Ukrenergo and the EBRD, as well as the European Investment Bank, amounted to 1.22 billion euros (about $1.32 billion), of which 215.5 million euros (about $233 million) remained undisbursed. Under agreements with the International Bank for Reconstruction and Development, the total was $509.74 million, with $54.87 million undisbursed.

In addition, under two grant agreements between Ukraine and the IBRD — for 37.7 million euros (about $41 million) and $200 million — 18.9 million euros (about $20.6 million) and $134.5 million remained undisbursed, respectively.

Earlier, Oleksandr Kharchenko, director of the Energy Research Center, said Ukraine had lost up to 80% of its international support in the energy sector.