Finland Allocates EUR 28.5 Million to Support Ukraine’s Energy Sector Reconstruction
Finland is contributing EUR 28.5 million from its development cooperation funds to support the reconstruction of Ukraine’s war-damaged energy infrastructure. The funding will finance the delivery of power plant engines manufactured by Wärtsilä Finland Oy, with the total project value amounting to EUR 45.6 million. Ukraine will cover the remaining costs of the initiative.
The engines will be produced in Vaasa, reinforcing Finnish expertise and employment in the energy sector. Ukraine’s state-owned energy company, Ukrnafta, is procuring the equipment to bolster the country’s energy production, particularly during winter months when Russian attacks on critical infrastructure have severely disrupted daily life. The Ministry for Foreign Affairs (MFA) reports that the project aims to enhance Ukraine’s energy security amid ongoing challenges.
Minister for Foreign Trade and Development Ville Tavio highlighted the dual benefits of the initiative, stating that Finland’s world-class energy sector expertise will aid Ukraine’s reconstruction while simultaneously supporting Finnish exports and jobs. “I am pleased that Finnish technology and Finnish workers are playing a part in strengthening the security of Ukraine’s energy supply,” Tavio said (MFA).
The funding is being channelled through the Finland–Ukraine Investment Facility (FUIF), which promotes public investments in Ukraine using Finnish technology and services. According to Daily Finland, Finland’s contribution will cover the interest costs and capital of the investment loan Ukraine will secure. Finnvera, Finland’s official export credit agency, is providing a 100 per cent export guarantee for the loan.
An earlier version of the MFA’s press release incorrectly stated the project’s total value as EUR 46.5 million and referred to power plants rather than power plant engines. The figures and details were later corrected.
