A €30 million European Union grant will be used to support repairs and upgrades to district heating systems in frontline communities in Ukraine, alongside €200 million in European Investment Bank financing.
The grant is being provided by the European Commission under the Ukraine Facility and is intended to help municipalities restore and modernise heat supply networks, improve energy efficiency and introduce renewable energy solutions, the EIB informed on Thursday.
Agreements linked to the new grant were signed with Ukrgasbank and Oschadbank on 3 September, with a further agreement with Ukreximbank expected to follow.
The wider programme builds on EIB financing signed with the three banks in 2025 — €50 million each with Ukrgasbank and Oschadbank, and €100 million with Ukreximbank — making funding available for municipal heating, energy-efficiency and renewable energy projects across Ukraine.
What the funding can be used for
Projects supported by the grant and loans can include repairs and protection of district heating networks, decentralised heat generation and investment in cleaner energy systems, the EIB said.
Examples listed include small-scale heat and power plants, solar panels with battery storage, heat pumps and thermal storage, as well as energy-efficiency improvements in public buildings.
Municipalities, communities, local enterprises and government authorities can seek financing for projects through Ukrgasbank, Oschadbank and Ukreximbank.
Reliable heating and energy are “matters of survival” for frontline communities due to winter conditions and the targeting of infrastructure, EIB Vice-President Karl Nehammer stated.
Russia’s attacks on Ukraine’s energy infrastructure have made strengthening energy resilience “more important than ever”, with the grant designed to complement EIB financing for restoring heating infrastructure while improving efficiency, EU Ambassador to Ukraine Katarína Mathernová said.
