Ukrnafta, Ukrenergo and Ukrhydroenergo to Receive €300 Million From EBRD Energy Package

Ukrnafta, Ukrhydroenergo and Ukrenergo will receive €300 million ($326 million) from the European Bank for Reconstruction and Development (EBRD) to restore generating capacities.

Ukrnafta, and EBRD will begin constructing peaking power plants capacities, which will, in the medium term, help support Ukraine's energy system, which has suffered from attacks by Russian missiles.

“This involves the construction of new, more efficient and environmentally friendly peaking power energy generation. These are gas piston and gas turbine power plants, the operation of which, in particular, will help contribute to recover lost infrastructure,” Ukrnafta’s CEO Serhiy Koretsky said.

Ukrnafta used to be mainly a state-owned oil company, but now things have change and it has begun generating electricity.

The company emphasized that launching new energy directions is a way for the company to expand the value-added chain, where electricity, not gas, is sold as a commodity. This concept is part of Ukrnafta’s ESG (environmental, social and governance) strategy, the company noted.

Ukrhydroenergo and Ukrenergo will also receive funds from the EBRD, though the state-owned companies have not given details on the peak power energy projects to which they will allocate the cash.

The EBRD has already provided Ukraine with €4 billion ($4.35) of financial aid.

Read the full text at Interfax-Ukraine.

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