EIB supports Ukraine’s energy security with €300 million loan to Naftogaz

This article is published in association with European Investment Bank.

• The financing is an urgent measure to strengthen energy resilience and replenish Ukraine’s long-term gas reserves ahead of winter.
• The operation incentivises Naftogaz’s shift towards renewables and decarbonisation, helping to build a cleaner and more sustainable energy future for Ukraine.
• The loan is backed by the European Commission under the EU’s Ukraine Investment Framework.

The European Investment Bank (EIB), the bank of the European Union, has signed a landmark €300 million loan agreement with Ukraine’s state-owned energy utility, Naftogaz. This financing is an urgent measure to support the resilience of the energy sector and help replenish the country’s long-term gas reserves ahead of winter. It will secure energy supply for households and businesses, following damage to Ukrainian infrastructure caused by Russia’s ongoing attacks. 

As part of the operation, Naftogaz pledges to reinvest an amount equivalent to the EIB loan into renewable energy and decarbonisation projects. The EIB is also already supporting this effort with technical assistance to help the company move forward with its decarbonisation strategy and advance its green transition.

This operation is part of the EIB’s Ukraine Energy Rescue Plan. Under this strategic initiative, the EIB has committed to provide urgent support for Ukraine’s energy system during the war, while keeping the country on course for the green transition and integration into the EU single market.

The financing is also part of a coordinated Team Europe effort, with the European Commission backing the loan through the EU’s Ukraine Investment Framework (UIF) guarantee. It complements parallel support provided by other partners like the European Bank for Reconstruction and Development (EBRD), ensuring a joint response in the Ukrainian energy sector of unprecedented swiftness, efficiency and impact. 

EIB Group President Nadia Calviño said: “This new financing from the EIB will help reinforce Ukraine’s energy security during the winter, providing vital support to communities and businesses.”

“This loan combines rapid crisis response with a long-term view. It supports the country’s shift to cleaner, more sustainable energy – a cornerstone of the country’s recovery and EU integration,” added EIB Vice-President Teresa Czerwińska,who oversees the bank’s operations in Ukraine.

Sergii Koretskyi, Chief Executive Officer of Naftogaz Ukraine,said: “€300 million from the EIB is substantial, practical support that will help us ensure the country’s energy resilience ahead of the winter. I sincerely thank the president of Ukraine, the government and the prime minister for their support, as well as our European partners for their trust and solidarity.”

Prime Minister Yulia Svyrydenko welcomed the agreement and highlighted its importance for Ukraine’s energy resilience.

Prime Minister of Ukraine Yulia Svyrydenko said: “The €300 million agreement between the EIB and Naftogaz demonstrates the tangible results of Ukraine’s partnership with the European Union’s bank. Thanks to this financing, Ukraine will be able to secure gas reserves and ensure a stable supply of heat this winter for hundreds of thousands of households, even amid ongoing enemy attacks. This agreement also continues Naftogaz’s transition towards renewable energy and decarbonisation. It is an important step towards building a modern energy system and advancing Ukraine’s integration into the European Union.”

The signing was attended by Minister of Economy, Environment and Agriculture Oleksii Sobolev and European Commissioner for Enlargement Marta Kos during her visit to Kyiv.

European Commissioner for Enlargement Marta Kos said: “This loan helps prepare Ukraine for another difficult winter. It will help households and businesses keep the lights and the heating on. It will advance Ukraine’s integration into the EU energy market.”

European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis said: “Russia has relentlessly targeted Ukraine’s energy infrastructure in its brutal attacks. As Ukrainians face a fourth winter since Russia launched its full-scale invasion, this timely €300 million loan agreement, supported by the EU budget, will help reinforce Ukraine’s energy resilience, ensuring reliable energy supplies for households and businesses. The EU remains Ukraine’s largest donor and supporter. Today’s agreement is yet another demonstration of the EU’s unwavering commitment to Ukraine and its people.”

Minister of Economy, Environment and Agriculture of Ukraine Oleksii Sobolev said: “This agreement between the EIB and Naftogaz is an important contribution to Ukraine’s energy and economic stability. Reliable energy supply is essential for businesses to operate, for jobs to be preserved, and for investment to continue flowing into our economy. At the same time, this partnership supports Ukraine’s long-term goal of building a resilient, sustainable and Europe-integrated energy sector.”

Background information

The EIB in Ukraine 

The European Investment Bank is the long-term lending institution of the European Union, owned by the Member States. Built around eight core priorities, it finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world. Present in Ukraine since 2007, the EIB has stepped up its financial support for the country’s resilience and modernisation since Russia’s full-scale invasion in 2022. Since then, the EIB has provided €4 billion in financing. Through its EU for Ukraine (EU4U) Initiative, coupled with its key role in implementing a dedicated window of the Ukraine Facility, the EIB is strongly committed to accelerating its activities in line with the mandate given by EU leaders, in close cooperation with the European Commission, the European Parliament, Member States and international partners.