Finland is supporting the reconstruction of Ukraine’s war-torn energy sector by allocating EUR 28.5 million from development cooperation funds.
According to the press service of the Finnish Ministry of Foreign Affairs, the total cost of the power plant technologies is EUR 46.5 million, with Ukraine financing the remaining funds for the project.
Wärtsilä Finland Oy has been selected as the supplier. The power plants will be manufactured in Vasa, which will also contribute to job creation, development of expertise, and exports in Finland.
Ukrainian state-owned energy company Ukrnafta is purchasing these power plants to ensure domestic energy production. Reliable energy production is vital, especially during the winter months, when Russian attacks on energy infrastructure complicate daily life in Ukraine.
According to Minister of Foreign Trade and Development Ville Tavio, this project combines Finland’s support for Ukraine with the advantages of Finnish technology.
“Finland has world-class expertise in the energy sector, which can be useful to Ukraine in its recovery efforts. I am pleased that Finnish technology and specialists are participating in strengthening the security of Ukraine’s energy supply. At the same time, this project promotes Finnish exports and employment,” Minister Tavio noted.
Finland is financing the project through the Finland-Ukraine Investment Fund (FUIF). FUIF’s goal is to support public investment in Ukraine using Finnish technology, expertise, and services. Finland’s funding will cover the interest costs and the principal amount of the investment loan to Ukraine. Finvera provides a 100% export guarantee for this loan.