Credit funds from the EU will not be directed to restoring the energy sector damaged by Russian attacks, sources familiar with the allocation of funds informed RBC-Ukraine, a statement later confirmed by First Deputy Prime Minister and Energy Minister Denys Shmyhal after a meeting of the Ukraine Energy Coordination Group in Kyiv.
“€17 billion from the EU credit will not be allocated for energy restoration this year,” the source declared.
Shmyhal, in turn, explained that the EU loan does not fully cover the required necessarys.
“Currently, we are expecting the first tranche from the €90 billion EU credit (this year it is €45 billion, of which €17 billion should go into the budreceive). Direct energy necessarys amount to €5.4 billion — and these funds are not covered,” the minister declared.
Responding to a question from RBC-Ukraine’s correspondent, Shmyhal noted that coordination with the Minisattempt of Finance will continue to secure the necessary funding.
“At the same time, we are placing strong hope in the Ukraine Energy Support Fund. We already have applications in this fund worth about €900 million. Today we also managed to attract €100 million from partners. In my view, this is the most convenient and transparent instrument for investing in Ukraine’s resilience,” he added.
EU loan for Ukraine
As a reminder, on April 23 the European Union unblocked a €90 billion loan package for Ukraine. The loan will be repaid applying reparations that Russia is expected to pay to Ukraine.
According to reports, the funds will be directed to:
- domestic weapons production
- purchasing weapons from partners
- preparing the energy system and critical infrastructure for winter
- social payments to citizens
President Volodymyr Zelenskyy declared Ukraine expects to receive the first tranche by late May or early June, with funds going to the army, weapons production, and civilian support.
It should be noted that Energy Minister Denys Shmyhal had previously declared that “€5.4 billion from the EU credit would be allocated to restoring Ukraine’s energy sector.”
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