Finland funds Wärtsilä power plants for Ukraine’s energy reconstruction
Finland is contributing €28.5 million from its development cooperation funds to support the delivery of power plants to Ukraine, as part of efforts to rebuild the country’s war-damaged energy sector. The Finnish technology company Wärtsilä Finland Oy will manufacture the plants in Vaasa, with the total project valued at €46.5 million. Ukraine’s state energy company, Ukrnafta, is financing the remaining costs (Finnish Ministry for Foreign Affairs).
The power plants are intended to bolster Ukraine’s electricity production, which has been severely disrupted by Russian strikes on critical infrastructure. Yle reports that reliable energy supply is particularly crucial during winter, when attacks have worsened living conditions for civilians (Yle).
Minister for Foreign Trade and Development Ville Tavio (Finns Party) emphasized the dual benefits of the project, stating that it combines Finnish support for Ukraine with the country’s technological strengths. “Finland has world-class energy sector expertise that can benefit Ukraine’s reconstruction efforts. I am pleased that Finnish technology and Finnish workers are playing a part in strengthening the security of Ukraine’s energy supply. At the same time, this project supports Finnish exports and employment,” Tavio said in a government press release (Finnish Ministry for Foreign Affairs).
The funding is being channeled through the Finland–Ukraine Investment Facility (FUIF), which promotes public investments in Ukraine using Finnish technology and services. Finland’s contribution will cover interest costs and capital for the investment loan Ukraine is taking out. Additionally, Finnvera has provided a 100% export guarantee for the loan (Finnish Ministry for Foreign Affairs).
