The French Development Agency (AFD) will provide state-controlled Ukrgazbank with a EUR25 million credit line, EUR10 million in loan guarantees, and up to EUR10 million in grants and technical assistance to enable the bank to continue financing Ukrainian municipalities.
A letter of intent to that effect was signed on Wednesday in Gdańsk on the sidelines of the Ukraine Recovery Conference (URC 2026) at an event organized by Ukrgasbank and Deloitte titled “Strategic Cooperation for Ukraine’s Prosperity: Joining Forces of the State, the Private Sector, and Donors to Promote Recovery,” reports a correspondent for the “Interfax-Ukraine” news agency.
“Thanks to the vital support from the European Commission, we are developing a new financial aid package. These funds will be directed directly to our local municipalities and cities. This will help communities affected by the war to rebuild, recover, and remain strong,” commented Rodion Morozov, acting chairman of the board of Ukrgasbank, on the signed document.
According to him, a significant portion of this funding will be directed toward financing municipal energy projects.
Ukrgazbank, 94.94% of whose shares are owned by the Ministry of Finance, ranked sixth among Ukrainian banks as of May 1, 2026, with total assets of 238.82 billion UAH.
Oschadbank has provided Elektrika Ukraine LLC with EUR 23.6 million in long-term project financing for the construction of a 50 MW battery energy storage system (BESS) with a capacity of 131.2 MWh, the bank announced.
As noted in its press release on Monday, a key feature of the deal is the inclusion of international insurance coverage involving Lloyd’s syndicates.
“For Oschadbank, this project marks the first experience in structuring energy financing with international insurance coverage, specifically involving Lloyd’s syndicates. The fact that international insurance companies are willing to participate in the implementation of energy projects in Ukraine amid the war creates potential for a significant expansion of the energy sector’s development and the implementation of complex infrastructure projects,” commented Serhiy Chernikov, Director of Oschadbank’s Corporate Business Department.
He noted that during the full-scale war, the bank has already concluded deals worth more than UAH 7.4 billion in the corporate business segment to finance the energy sector and remains a leader in this area.
“We are sincerely grateful to Oschadbank for its trust, professionalism, and willingness to support Ukraine’s energy sector even during the most challenging times. Energy storage systems are not just an infrastructure asset, but the foundation of Ukraine’s energy security and the basis of the energy system of the future,” noted Maksym Pyshny, Director of Elektrika Ukraine LLC.
According to him, the company plans to implement a number of additional projects in Ukraine’s energy infrastructure and looks forward to further cooperation with Oschadbank.
As for the BESS project itself, according to the bank, the financing covers approximately 70% of its cost and is aimed at increasing the flexibility and resilience of Ukraine’s energy system amid limited generation and high loads caused by the consequences of the war.
It is specified that the project is being implemented under a long-term contract with NPC “Ukrenergo” and involves the provision of automatic frequency restoration reserve services—one of the main mechanisms for balancing the power system.
