Finland grants €28.5m to support Ukraine's energy sector

Finland is supporting the reconstruction of Ukraine's war-torn energy sector with EUR 28.5 million to be granted from development cooperation funds, said the Ministry for Foreign Affairs in a press release on Thursday.

The total value of the power plant technology involved is EUR 46.5 million, with Ukraine funding the remainder of the project itself.

Wärtsilä Finland Oy has been selected as the supplier. The power plants will be manufactured in Vaasa.

Ukraine’s state energy company, Ukrnafta, is purchasing the power plants to secure the country’s energy production, particularly in winter months, when Russian strikes on energy infrastructure have made day-to-day life in Ukraine difficult.

“Finland has world class energy sector expertise that can benefit Ukraine’s reconstruction efforts. I am pleased that Finnish technology and Finnish workers are playing a part in strengthening the security of Ukraine’s energy supply. At the same time, this project supports Finnish exports and employment,” Minister for Foreign Trade and Development Ville Tavio said in the press release.

Finland’s funding for the project is being granted through the Finland–Ukraine Investment Facility (FUIF). The FUIF aims to support public investments in Ukraine using Finnish technology, expertise and services.

Finland’s funding will be allocated to the interest costs and capital of the investment loan Ukraine will take out.

Finnvera is granting a 100 per cent export guarantee for the loan.