EIB to lend 450 mln euros to support Ukrainian energy infrastructure

MOSCOW. July 24 (Interfax) - The European Investment Bank (EIB) plans to provide 450 million in euros in new loans to support Ukrainian energy infrastructure, Ukrainian media reported, citing the bank.

EIB Group President Nadia Calvino briefed European Union foreign ministers about increased support for Ukraine's energy system and businesses at a meeting today in Brussels, the bank said in a press release.

The EIB Group plans new loans totalling 450 million euros for Ukrainian energy investments, including the reconstruction of hydropower plants and electricity grid infrastructure, as well as for the restoration of district heating networks in Ukrainian cities, the bank said.

"A further 86 million euros will go to Ukraine's national grid operator, Ukrenergo, to build anti-drone shelters for power stations," the EIB said, adding that these "measures are meant to strengthen the resilience of the Ukrainian energy system through the next heating season."

The EIB said it will expand its support for Ukraine's economy by facilitating access to financing for businesses and boosting trade with the EU.

The EIB Group approved three partial portfolio guarantees expected to generate over 110 million euros in new lending to Ukrainian micro, small and medium-sized enterprises through three Ukrainian banks. The group also intends to provide partial portfolio guarantees to five more banks in Ukraine by the end of the year under the EU4Business Guarantee Facility.

Furthermore, the European Investment Fund will launch a call for expressions of interest under a 300 million euro export-credit guarantee facility to support EU companies trading with Ukraine. The initiative will offer guarantees to export-credit agencies in EU member countries as well as Norway and Iceland.