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Germany will provide Ukraine with over 30 million euros in soft loans

Jun 10, 2024

In Berlin, a guarantee agreement was signed between the German and Ukrainian parties regarding the raising of a loan in the amount of 30.4 million euros. These funds from the government of Germany will be directed through the state German Development Bank (KfW) to increase the reliability of Ukraine's energy infrastructure.


This is reported by RBC-Ukraine with reference to the Ministry of Finance of Ukraine.

The corresponding agreement was signed on June 10 on behalf of the Ukrainian government by the head of the Ministry of Finance Serhiy Marchenko.

"The signing took place in the presence of the Minister of Energy of Ukraine Herman Galushchenko, General Director for Neighborhood Affairs and EU Enlargement Negotiations Gert-Jan Koopman and representatives of the German government," the ministry said.

It is noted that the credit agreement was concluded by the chairman of the board of the National Energy Company "Ukrenergo" Volodymyr Kudrytskyi, representatives of KfW - board member Christian Laibach, and regional director for Eastern Europe, Caucasus, Central Asia Veronika Garcia del Arco.

The credit term is 30 years, as specified in the conditions, with the first 10 years being a grace period.

The interest rate for using the loan is 2% per annum, the Ministry of Finance said.

According to Kudrytskyi, the received loan funds will be sent "for the reconstruction of one of our substations in the western region."

"After modernization, it will be a high-tech automated facility that will meet the requirements of ENTSO-E regarding the reliability of the power transmission system and network security," said the head of the board of Ukrenergo.

In addition, he added, the provided funding "will help purchase expensive high-tech equipment for substations that were damaged during enemy missile and drone attacks."

The Ministry of Finance noted that since the beginning of the large-scale military aggression of the Russian Federation against Ukraine, the German government has received 1.55 billion euros for budget support, of which 1.25 billion euros are grant funds and 0.3 billion euros are loans.

Author - Serhii Kolomiets, 11/06/2024

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