Ukrenergo Will Send EUR 50 Million Loan From EBRD To Support Liquidity

The European Bank for Reconstruction and Development (EBRD) has repurposed EUR 50 million to support the liquidity of the Ukrenergo national energy company on the company's existing loan.

The company announced this in a statement, Ukrainian News Agency reports.

These funds will be used to finance the operating activities of Ukrenergo in case of insufficient revenue from the payment of tariffs for transmission and dispatching services.

At the same time, the European Union provided an additional guarantee for the loan through the European Fund for Sustainable Development.

The EBRD notes that this operation is part of a EUR 1 billion investment that the bank plans to invest in supporting the Ukrainian economy this year in cooperation with donors and partners.

The key areas for the use of repurposed loan funds will be: financing the urgent operating expenses of Ukrenergo; calculations for technological losses in the network; payment for ancillary services in the electricity market; calculations to ensure an increase in the share of electricity production from renewable energy sources.

As Ukrainian News Agency reported, Ukrenergo made the first payment of interest on obligations under green Eurobonds for sustainable development in the amount of USD 28.4 million.

Ukrenergo carries out dispatching of the energy system of Ukraine and transmits electricity from power plants to the networks of energy supply companies.

Besides, the company is entrusted with the functions of an organizer of auctions for access to the cross-section of interstate power lines for the export of electricity.