EBRD and EU expand support for Kyiv's energy security
The European Bank for Reconstruction and Development (EBRD) is doubling its support for Kyiv, Ukraine’s capital, with a new €50 million loan that matches its earlier lending in 2024. The financing will help ensure the uninterrupted delivery of vital municipal services and mitigate the impacts of Russia’s ongoing war on Ukraine, according to a press release by the EBRD. The loan is 25 per cent backed by an EU guarantee under the Ukraine Investment Framework. It will support Kyiv’s municipal utility, Kyivteploenergo (KTE), through emergency liquidity assistance. The financing aims to sustain essential services and strengthen the city’s energy resilience.
Kyiv, Ukraine’s capital and economic centre, is home to around 3 million people and hosted approximately 400,000 internally displaced people as at the end of 2025. Russia’s ongoing attacks on Ukraine’s energy infrastructure have severely affected the city’s heating and power systems. In early 2026, Kyiv’s combined heat and power plants sustained significant damage. The disruption affected heat and electricity supplies to residential buildings and hundreds of critical public facilities, including hospitals, schools and kindergartens. The EU guarantee, covering 25 per cent of the financing, is critical to enabling the transaction.
The EBRD loan will help the city and KTE address urgent liquidity needs caused by wartime damage, increased service demand and constrained municipal finances. It will support the uninterrupted provision of heating, electricity and municipal services. The funds will also help KTE maintain operations, retain its workforce and complete urgent repairs ahead of the winter heating season. The financing is designed to stabilize the utility during a period of intensified pressure. It reinforces the continuity of essential public services in the capital.
The loan will also support the city’s efforts to strengthen energy resilience, including the deployment of decentralised cogeneration units that can operate independently during national grid outages. Reliable heat and electricity are critical to protecting public health, maintaining education and healthcare services, and supporting economic activity. The EBRD and EU support will enable Kyiv to expand its veterans’ assistance network across its districts. This will strengthen the city’s capacity to respond to up to 60,000 requests annually. Improved access will cover rehabilitation, reintegration, employment and social support services for veterans, their families and other affected groups.
The EBRD is Ukraine’s largest institutional investor and has significantly increased its support since Russia launched its full-scale invasion in 2022. Since the start of the war, the Bank has deployed €10.5 billion to support the real economy. Its focus has centered on energy security, private-sector resilience and critical infrastructure. The new financing continues this trajectory of engagement with Ukraine’s municipal and energy sectors. It underscores the joint EBRD–EU commitment to sustaining vital services in Kyiv.