Emergency relief for Ukraine's energy system - further 100 million Euros for the Ukraine Energy Support Fund

The Federal Ministry for Economic Affairs and Energy (BMWE) is providing an additional 100 million euros through the KfW Development Bank for the repair of Ukraine’s energy infrastructure. These funds come in addition to the 60 million euros announced earlier this year. They will go to the Ukraine Energy Support Fund (UESF) of the Energy Community, into which numerous other international donors have been contributing since 2022.

Federal Minister for Economic Affairs Katherina Reiche:
“Russia is consistently and intentionally targeting Ukrainian energy infrastructure, to turn winter itself into another weapon. Ukraine’s energy supply has long become another front line in this war. Here it will be decided how hard the Ukrainian people are hit by this winter. Our further support of 100 million Euros sends a clear answer: We do not abandon the Ukrainian people. In protecting energy supply, we protect human beings – that’s the point.”

The Energy Support Fund is used to finance spare parts and equipment for destroyed energy infrastructure. The Energy Community, with the help of an external procurement agency, conducts transparent and competitive tenders for the goods to be procured and monitors the use of the funds. Ukrainian energy companies thus receive quick support for the repair of destroyed energy infrastructure. In light of recent investigations by Ukrainian anti-corruption authorities, KfW will continue monitoring the strict adherence to its compliance regulations. This includes the fact that BMWE’s contribution to UESF is conditioned upon a sufficient corporate governance of Ukrainian energy companies and that this condition is constantly being monitored. Compliance with corporate governance standards in line with established standards, particularly at state-owned companies, forms the foundation for a continued trusted cooperation with our Ukrainian partners.

By early 2025, the German government had already contributed over 390 million euros to the Energy Support Fund. Together with the recently announced increase of 60 million euros, Germany's contribution will rise further, bringing the total to 550 million euros by the end of 2025. Germany remains by far the largest donor to the fund, which has raised more than 1.3 billion euros since February 2022.