The Federal Ministry for Economic Affairs and Energy (BMWE) is providing an additional approx. €250 million via the KfW Development Bank for urgent repair needs of Ukraine’s energy infrastructure before the upcoming winter. This support will help to secure the population’s electricity and heat supply despite ongoing Russian attacks. The funds will flow into the Ukraine Energy Support Fund (UESF) of the Energy Community, into which numerous other international donors have also been contributing since 2022.
Federal Minister for Economic Affairs Katherina Reiche: Ukraine remains under heavy Russian assault on people and civil infrastructure. Ukraine is not some far away war, but its security is a European responsibility. Energy supply especially remains a front line of this war. That is why we support Ukraine in protecting and rebuilding energy infrastructure and appeal to all international partners for further efforts. Germany is the largest donor of the Ukraine Energy Support Fund and supports Ukraine in tandem with German companies. Through private donations of parts, energy for 1.4 million people has already been restored. At the same time we are mobilizing private investements in reconstruction. Because a free Ukraine needs a strong economic outlook and prosperity in freedom.
Through the UESF, Ukraine finances spare parts and equipment for destroyed energy infrastructure. By specifically funding decentralisation measures, the energy system also becomes more stable and resilient against further attacks. The Energy Community, with the help of an external procurement agent, conducts transparent and competitive tenders for the required goods and monitors the use of the funds. In this context, KfW, on behalf of the BMWE, actively supports the participation of German suppliers. Ukrainian energy companies thus receive swift assistance for repairing damaged infrastructure. The BMWE’s contribution to the UESF is also intended to help build a “strategic spare-parts reserve”, which addresses lengthy delivery times.
To prevent risks in the use of funds, KfW, on behalf of the BMWE, will continue to strictly enforce compliance regulations in all procurements. This includes the requirement that Ukrainian energy companies demonstrate adequate corporate governance as a condition for receiving support through the UESF. Adherence to established corporate-governance standards—especially for state-owned enterprises—forms the foundation for a continued trusted cooperation with our Ukrainian partners.
Since 2022 the German federal government has already contributed about €560 million to the Energy Support Fund. With the new increase of about €250 million, the total contribution rises to roughly €810 million. Germany therefore remains by far the largest donor to the fund, which has collected more than €2.4 billion since February 2022. These contributions demonstrate that the German government continues to stand firmly by Ukraine in the face of a fifth winter of war since the start of Russia’s full-scale invasion.