Ukraine is set to receive $522 million from US to bolster its energy system
The governments of Ukraine and the United States have inked a cooperative memorandum aimed at strengthening Ukraine's energy infrastructure. The United States has committed $522 million to support this initiative
This announcement was made by Ms. Bridget Brink, the US Ambassador to Ukraine.
She wrote, "Our new energy agreement with Ukraine includes $522m to strengthen the grid, boost Euro integration, and improve corp. governance of energy SOEs."
Approximately half a billion dollars from this funding will be directed towards modernizing, securing, and enhancing the transparency and competitiveness of Ukraine's energy sector.
Ambassador Brink stressed the significance of these efforts for Ukraine's future success.
Furthermore, the United States plans to provide an additional $100 million in energy-related aid to Ukraine, contingent upon Ukraine's commitment to specific actions, including:
- Approving a new charter and establishing the Supervisory Board of "Operator of the Natural Gas Transmission System of Ukraine" LLC by October 30, 2023.
- Demonstrating progress in the corporatization plan of Energoatom State Enterprise, including initiating a competitive process for selecting members of the Energoatom Supervisory Board by November 30 and establishing Energoatom PJSC by December 31, 2023.
- Additionally, by April 1, 2024, the National Commission for State Regulation of Energy and Public Utilities must define the procedures, scope, degree, and frequency for reporting information on wholesale energy trade, as stipulated by the REMIT legislation.
The memorandum becomes effective upon the signing by the participating parties and is expected to remain in force for one year.
Ukraine's preparations for the upcoming heating season
Ukrainian Energy Ministry reported that planned repairs at energy facilities are on track. However, there are concerns about readiness in regions near Russia and in frontline areas.
On August 13, Prime Minister Denys Shmyhal announced that Ukraine is taking steps to protect energy facilities at multiple levels.
It has been confirmed that protective structures are being constructed around Trypilska and Zmiivska Thermal Power Plants.
Volodymyr Kudrytskyi, the head of the board of the Ukrenergo National Power Company, mentioned that Ukraine is preparing for the heating season and potential energy infrastructure threats, not just relying on air defense measures.
As of September 19, Ukrainian underground gas storage contained 14.7 billion cubic meters of natural gas, surpassing the planned amount ahead of schedule.
On September 21, the Minister of Energy, Herman Halushchenko, confirmed that Ukraine's energy system is fully prepared for the upcoming autumn-winter period.