EIB provides €86 million to protect Ukraine’s energy infrastructure from Russian attacks

This article is published in association with European Investment Bank.

• The EIB is helping Ukrenergo, Ukraine’s national electricity transmission system operator, to build protective anti-drone shelters to safeguard critical power substations.
• The funding aims to strengthen the resilience of Ukraine’s energy system amidst ongoing military aggression.
• This European Union-backed investment is part of the Ukraine Energy Rescue Plan, adopted by the EIB as an urgent initiative to support Ukraine’s energy sector.

The European Investment Bank (EIB) has directed €86 million, backed by EU guarantees, to Ukrenergo, Ukraine’s national electricity transmission system operator, to support the physical protection of Ukraine’s critical energy infrastructure. This funding – provided under the EIB’s Ukraine Solidarity Urgent Response Package developed in cooperation with the European Commission – marks the first measure of the Ukraine Energy Rescue Plan adopted by the Bank in October 2024 to address the extensive damage to Ukraine’s energy infrastructure caused by Russia’s ongoing war.

The funds will support the construction of protective anti-drone structures for electricity transmission equipment, strengthening its resilience against military attacks and ensuring the safety and functionality of Ukraine’s energy transmission infrastructure during wartime. This investment will enable Ukrenergo to enhance the stability and reliability of energy transmission across Ukrainian regions.

This initiative is of vital importance for Ukrainian society, as Russia continues its targeted attacks on energy infrastructure in an effort to deprive civilians and businesses of essential power. By protecting the energy system, this funding ensures a more stable energy supply, helping to sustain daily life and economic activity across the country.

EIB Vice-President Teresa Czerwińska, who is in charge of the Bank’s operations in Ukraine, said: “This €86 million investment is an important step in fortifying Ukraine’s energy infrastructure against ongoing military aggression. By supporting Ukrenergo in constructing protective anti-drone shelters, we aim to ensure the uninterrupted delivery of electricity across the country, meeting the needs of both civilians and businesses. The EIB remains steadfast in its commitment to Ukraine’s resilience, working alongside our EU partners to rebuild and advance critical infrastructure, especially in the energy sector, which is essential for sustaining daily life, economic stability, and the recovery of Ukraine.”

European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis said: “This €86 million EU-guaranteed EIB loan comes at a vital time as the people of Ukraine face their third winter since Russia launched its full-scale invasion. This financing will support improvements to protect Ukraine’s energy infrastructure which has been the target of relentless attacks from the Russian war machine. Such investments are crucial to protect Ukrainian citizens from harsh winter conditions and enable the country to continue its fight for survival. This transaction is yet another demonstration of how the EU remains committed to standing with Ukraine and its people.”

Minister of Energy of Ukraine German Galushchenko said: “Ukraine’s energy infrastructure remains one of the primary targets of Russian aggression and terror. The enemy has already launched over 1,000 missiles and daily directs hundreds of drones at our power plants, substations, and power transmission lines. Thanks to international support, particularly funding from the European Investment Bank and the European Commission, we are strengthening our ability to counter these challenges. Protecting critical energy facilities is not just about physical security. It is about energy independence, resilience, and Ukraine’s future”.

Acting Chairman of the Management Board of NPC Ukrenergo Oleksii Brekht said: “We are sincerely grateful to our partners for their continued support. Amid Russian attacks on the energy system, protecting the key equipment of our substations is critically important. The effectiveness of already implemented projects was demonstrated, particularly during the recent massive missile and drone strikes in November and December. Construction work on protective structures is ongoing. The more substations we manage to protect, the more resilient Ukraine’s energy system will become, and the lower the risk of forced outages for consumers.”

Background information

 The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of the Global Gateway. We aim to support €100 billion of investment by the end of 2027, around one-third of the overall target of this EU initiative. With Team Europe, EIB Global fosters strong, focused partnerships, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to people, companies and institutions through our offices around the world.