Ukraine Secures $70 Million World Bank Support to Boost Energy System Resilience
Ukraine and the International Bank for Reconstruction and Development (part of the World Bank Group) signed a $70 million guarantee agreement on Friday aimed at enhancing the resilience of Ukraine’s energy system as the country moves toward integration with the European energy network.
The Gaze reports on this with reference to the Ministry of Finance of Ukraine.
Ukraine has secured financing under the Climate Investment Funds (CIF) initiative to support the "Ukraine – Energy Resilience for European Grid Integration" project. The funds, guaranteed by Ukraine’s sovereign backing, will be directed toward installing hybrid renewable energy systems at PJSC Ukrhydroenergo, including solar photovoltaic units designed to provide backup power for the country’s hydropower plants.
The agreement was signed by Ukrainian Prime Minister Denys Shmyhal and Anna Bjerde, the World Bank’s Managing Director of Operations.
"I am profoundly grateful to the World Bank for its steadfast support during these challenging times of war and uncertainty," stated Ukraine’s Minister of Finance, Serhii Marchenko. "Today’s agreement underscores our joint efforts to stabilize Ukraine’s energy sector and move closer to full integration with Europe’s energy network."
The discussions highlighted Ukraine’s cooperation with the World Bank throughout the three years of full-scale war and explored future initiatives for 2025.
Since the onset of Russia’s full-scale invasion, the World Bank has launched 12 emergency and recovery projects in Ukraine, spanning social assistance programs, the reconstruction of energy, transportation, and housing infrastructure, healthcare reform, education, agricultural support, SME development, and modernization of customs and tax systems. Major initiatives include PEACE, INSPIRE, Re-PoWER, RELINC, HOPE, HEAL, ARISE, RISE, THRIVE, LEARN, SURGE, and DRIVE.
In 2024 alone, Ukraine and the World Bank signed 28 agreements totaling $31.8 billion, with $22.9 billion provided as grants. These funds have played a crucial role in supporting vulnerable households, internally displaced persons, individuals with disabilities, families with children, and in financing salaries for healthcare workers, educators, emergency responders, and civil servants through the PEACE in Ukraine project.
Additionally, the HOPE project enabled housing repairs for nearly 85,000 households impacted by the war, while the Re-PoWER project secured $47 million in contracts to deliver vital heating infrastructure, including modular boiler stations, cogeneration units, and generators, to the city of Kharkiv.
Ukrainian officials emphasized that millions of citizens continue to benefit from these initiatives, reaffirming the critical role of the World Bank partnership in sustaining Ukraine’s resilience and advancing recovery efforts.
As the Gaze reported earlier, on April 22, Poland officially launched a €58.25 million concessional lending initiative aimed at supporting Polish companies investing in Ukraine.