EU boosts support for Ukraine’s energy sector with new €50 million loan

The European Commission, in partnership with the European Investment Bank, has extended an additional €50 million loan to Ukraine’s state-owned energy company Naftogaz.

According to a statement released by the European Commission’s press service on January 29, the funding is intended to bolster Ukraine’s energy system during what is considered the most severe winter since the war began. The money will be used to secure heating and power supplies for households, essential services and businesses nationwide.

EU Commissioner for Enlargement Marta Kos described the situation in stark terms, saying: “The news coming from Ukraine every morning is horrifying. What Russia is doing is state terror. This goes beyond war. People are freezing to death. Many are fleeing Kyiv and other cities.”

The loan forms part of the Ukraine Facility programme, under which total EU support for emergency gas purchases for the winter of 2025–2026 has now reached €977 million.

Under the terms of the agreement, Naftogaz is required to reinvest a sum equal to the loan into renewable energy and decarbonisation initiatives.

In addition, the European Commission announced €145 million in emergency humanitarian assistance for Ukraine on Thursday, citing the escalation of Russian attacks.

It was also reported that on January 27, a delivery of 76 emergency generators from the EU’s strategic reserves arrived in Kyiv.

By Tamilla Hasanova