EU and Ukraine sign €50 million agreement to support Energy Efficiency Fund

EU and Ukraine sign €50 million agreement to support Energy Efficiency Fund

The FINANCIAL -- A Financing Agreement of €50 million was signed last week to support the Ukrainian Energy Efficiency Fund.

The agreement was signed by Vice Prime Minister Hennadii Zubko and Head of the Support Group for Ukraine Peter Wagner, in the presence of Prime Minister Volodymyr Groysman, according to the EU Neighbours portal.

It is expected that the Fund will contribute to energy savings and to the reduction of greenhouse gas emissions in Ukraine. The EU, together with Germany, will also support the activities of the Energy Efficiency Fund in providing grants towards the energy efficient renovations of apartment blocks across Ukraine.

Wagner said: “Ukraine remains one of the most energy intensive countries in Europe, with energy consumption per square meter at least twice as high as in the EU. By reducing the energy consumption in Ukraine's housing sector, we will contribute to the energy security of Ukraine and improve the living standards of Ukrainian citizens.”

The Ukrainian Energy Efficiency Fund was set up earlier this year by the Ukrainian government, in close cooperation with the EU and Germany. The €50 million Energy Efficiency support programme is part of this effort. Germany will contribute an additional €15 million to the programme, while the Ukrainian government has also committed close to €50 million to the Fund in 2018. Since 2014, the EU has pledged €965 million in European Neighbourhood Instrument grants to support Ukrainian reforms.