Estonia to support Ukraine's energy system resilience with two million euros

TALLINN - The Estonian Ministry of Climate is supporting the Ukraine Energy Support Fund with two million euros to help restore Ukraine's energy infrastructure and ensure its security of supply.

Since 2022, Russia has carried out more than a thousand targeted attacks to cripple Ukraine's energy infrastructure, destroying power plants, substations, and gas facilities.

Ukraine's electricity generation capacity has dropped by approximately two-thirds, and covering peak consumption during the upcoming winter is not possible without international aid. The energy shortage also directly impacts the functioning of water supply, sanitation, and other vital services.

Ukraine's energy system is in an exceptionally difficult situation due to Russia's targeted attacks. Supporting the energy infrastructure is crucial for Ukrainian society and directly linked to the country's resilience and the daily survival of its people.

"Estonia's support for Ukraine is consistent and long-term. Today, energy in Ukraine is not just an economic sector but a matter of survival. Every restored substation, every working generator means a warm home, a functioning hospital, and a functioning society. Estonia's support will also help Ukraine cope with the potential difficulties of the coming winter," said Minister of Energy and Environment Andres Sutt.

The support for the energy fund will help cover the most urgent needs of Ukrainian energy companies, including procuring spare parts, generators, and fuel, as well as carrying out emergency repairs. Through the fund, aid reaches specific projects quickly, and the support is paid directly to suppliers of goods and services, ensuring transparent and audited use.

The Ukraine Energy Support Fund was established by an agreement between the European Commission and the Ministry of Energy of Ukraine to neutralize the impact of Russia's attacks on critical energy infrastructure.

The fund allows governments, international financial institutions, and international organizations, as well as corporate donors, to provide financial support for the Ukrainian energy sector's efforts to repair damage and maintain operations. The fund is managed by the EU's Energy Community, of which Estonia is a member state.

Estonia has previously donated 620,000 euros to the fund from the resources of the Ministry of Foreign Affairs: 50,000 euros in 2023, 420,000 euros in 2024, and 150,000 euros this past October. In total, countries have donated 1.44 billion euros to the fund.

"We in Estonia also want to set an example for countries that have not yet contributed to the fund, because supporting Ukraine's energy infrastructure is our common responsibility: it is a matter of defending freedom and democracy," the minister said.

In addition to financial aid, Estonia, in cooperation with its energy companies, has sent generators, transformers, and other critical energy equipment to Ukraine, and work continues to find possible future donations and forms of cooperation.