In agreement with the European Commission the Ministry of Energy of Ukraine, the Ukraine Energy Support Fund was established to counteract the impact of the Russian attacks targeting critical energy infrastructure. The Fund enables governments, international financial institutions and international organizations as well as corporate donors to provide financial support to the Ukrainian energy sector’s efforts to repair that damage and keep functioning.
Contributions to the Fund are used to finance the most urgent needs of Ukrainian energy companies such as equipment, spare parts and other technical items, as well as fuels and services needed to repair infrastructure and maintain energy and heat supply in Ukraine.
The Fund is managed by the Energy Community Secretariat, the independent executive institution of the Energy Community based in Vienna, Austria. The Energy Community is an international organization to which Ukraine and the European Union are members. The Secretariat acts as the fiduciary of the Fund as well as an intermediary between the donors and the Ukrainian authorities. Its services are free of charge.
Ukraine Energy Support Fund in brief
How does the Fund work?
How does the Ukraine Energy Support Fund work?
A donation to a special purpose account can be made upon conclusion of a grant and fiduciary agreement between the donor, the Energy Community Secretariat as fiduciary of the Fund and the Ministry of Energy of Ukraine. The agreement can be complemented by a declaration earmarking donations for a specific purpose and/ or companies. It is complemented by standard framework agreements between the Ministry of Energy of Ukraine and eligible Ukrainian energy companies.
REQUEST FOR SUPPORT
An eligible Ukrainian energy company can request support from the Fund via the Ministry of Energy of Ukraine. The Ministry, with the assistance of independent international experts, verifies the necessity, usefulness and urgency of the items requested and prioritizes them according to pre-determined criteria. The Ministry of Energy of Ukraine approves each support request.
The procurement is conducted by an external procurement agent, Tetra Tech ES, Inc., implementer of the USAID funded Energy Security Project. The process is overseen by the Energy Community Secretariat. Whilst the procurement agent selects the supplier and negotiates the terms and conditions of the Supply Agreement, the Secretariat, acting as manager of the Fund, is responsible for the payment of the said goods and/or services. A contract is concluded directly between the supplier and the Ukrainian energy company.
Upon the conclusion of the procurement procedure, the Energy Community Secretariat, as the fiduciary of the Fund, disburses the funds directly to the supplier of procured items, fuels or services in accordance with the contract terms.
The delivery and installation of the procured items is tracked by the Energy Community Secretariat with the support of external experts. Donors receive a report informing them how their contribution was used. An independent audit of the entire process is ensured by the Secretariat.
Process - step by step
Explaining the process - step by step
Ukraine Energy Support Fund Reporting
In order to ensure full transparency about the implementation of the Ukraine Energy Support Fund, the Energy Community Secretariat as fiduciary reports to the Ministry of Energy of Ukraine and donors about grants received and disbursements made on a monthly basis.
Aggregated quarterly and semi-annually reports will also be shared with the public and will be available below.
1H 2023 REPORT Ukraine Energy Support Fund
Executive Summary Findings
- contributions amounting to a total of EUR 30,124,821 have been transferred by nine donors to the Special Purpose Account, adding up to a total of EUR 165,892,812 by altogether 14 donors since the establishment of the Fund in 2022;
- essentially all funds credited to the Special Purpose Account have been committed to finance items requested by 42 different Ukrainian Counterparties;
- procurement resulted in the conclusion of 53 Purchase Agreements, the total value of items contracted amounting to EUR 32.0 million.
Document Name Countries Published on Ukraine05.09.2023
Activity of Ukrainian Counterparties supported through the Fund, in % on the basis of their number
In terms of numbers, the majority of Ukrainian Counterparties requesting support through the Fund are active in electricity distribution (33%) and combined heat and power generation (33%), followed by gas distribution (19%).
Activity of Ukrainian Counterparties supported through the Fund, in % on the basis of the value of the items requested
In terms of value of the items requested, companies active in combined heat and power generation and electricity distribution are supported predominantly (35% and 26% respectively).
Categories of items supported through the Fund, in % on the basis of value
Among the categories of items requested by these companies, in terms of value, 37% account for transformers, followed by steam turbines (17%) and special purpose vehicles (17%).
Contributions to the Fund
Contributions to the Fund ( in EUR)
Sponsor Amount Danish Energy Agency 535,494 Foreign, Commonwealth and Development Office of the United Kingdom 11,327,519 Federal Foreign Office on behalf of the Federal Republic of Germany 30,000,000 KfW on behalf of the Federal Ministry for Economic Affairs and Climate Action of the Federal Republic of Germany 99,500,000 Ministry for the Ecological Transition and the Demographic Challenge of Spain 4,500,000 European Union 5,000,000 Ministry of Foreign Affairs of Iceland 2,052,842 Austria 10,000,000 Sweden 25.270.074 USAID* 23,000,000 Parlamento de la Rioja 6.000 Private sector* 7,138,000
The amount displayed refers to the contributions pledged by donors and does not necessarily reflect the amount already transferred to the Fund. The total amount that has been deposited in the Fund currently amounts to EUR 191.829.928,77.
* not yet (fully) transferred
Contributions by country
2022 - 2023 Total Monthly Deposits (in EUR)
Frequently asked questions & answers
How to contribute to the Fund?
Contributions to the Fund are generally based on a Grant and Fiduciary Agreement to be concluded between the donor, the Energy Community Secretariat and the Ministry of Energy of Ukraine. The Energy Community Secretariat provides templates of such agreements to any interested donor. They can be further adapted by the donor to cater for their specific requirements and expectations. Based on the Grant and Fiduciary Agreement, the donor transfers the grant to the Special Purpose Account.
Can donors direct their contribution to a particular purpose or type of energy company?
Donors are able narrow down the general list of companies eligible for disbursements maintained by the Ministry of Energy of Ukraine. They can also exclude certain usages and/or earmark their contribution for a specific purpose and/or type of company. Contributions of donors which choose not to earmark their donations will be used to finance the most urgent needs as identified by the eligible companies and confirmed by the Ministry of Energy of Ukraine and independent international experts. Disbursements can be attributed to individual donors.
What types of purchases are eligible to be covered by the fund?
- Equipment, spare parts, other gear etc.
- All types of fuels needed to generate heat and electricity as well as the purchase of electricity
- Services such as repairs or reinforcements
- Capital inflow
- Ancillary costs such as transportation
Can donors earmark their contribution for a particular purpose or energy company?
Donors are able to earmark their contribution for a specific purpose and/or narrow down the list of companies eligible for disbursements maintained by the Ministry of Energy of Ukraine. Contributions of donors which choose not to earmark their donations will be used to finance the most urgent needs as identified by the eligible companies and confirmed by the Ministry of Energy of Ukraine and independent international experts. Disbursements can be attributed to individual donors upon their request.
How does the procurement of goods and services take place?
To ensure utmost transparency and efficiency, the procurement of equipment, fuels or services is conducted by independent procurement agencies. The procurement process is limited in time to respond to Ukraine’s energy sector needs as quickly as possible. The procurement process is overseen by the Energy Community Secretariat as the fiduciary of the Fund.
What safeguards are introduced into the scheme of the Fund?
Before any disbursement is made, independent international experts will assess the necessity, usefulness and urgency of any support request, as well as the lack of capital by the requesting company on which basis the Ministry will approve or reject the request. Disbursed grants go directly to the provider of needed equipment, fuel, services, and do not pass through a Ukrainian energy companies’ or the Ministry’s accounts. The procurement procedure is outsourced to reputable independent experts. The Secretariat acts as fiduciary of the grants, and disburses them strictly in line with the provisions of the agreements and is subject to strict accounting, reporting and auditing rules.
Concerns with how the Funds are spent?
The Energy Community Secretariat as fiduciary of the Ukraine Energy Support Fund is committed to ensuring the highest standards of conduct in the delivery of support to Ukraine. The Ukraine Energy Support Fund has been designed to include a number of safeguards to prevent abuse in its implementation. Nevertheless, we are committed to follow-up on any information indicating possible abuses.
Please notify any suspicion of irregularities, including but not limited to diversion and misuse of support, fraud, corruption, money laundering immediately to [email protected].
Full confidentiality of your submission is ensured by the Energy Community Secretariat.
Support provided to the Ukrainian Counterparties
Support provided to the Ukrainian Counterparties (01/2023 - 06/2023)
During 01/2023 - 06/2023, procurement resulted in the conclusion of 53 Purchase Agreements.
Activity supported through the Fund: on the basis of their number (%)
The Ukrainian Counterparties benefitting from the Purchase Agreements are mostly active in combined heat and power generation (32%), electricity distribution (28%) and gas distribution (24%), in terms of numbers of companies.
Activity supported through the Fund: value of the items requested (%)
Taking into account the value of the requested items, the Ukrainian companies benefitting most are active in gas transmission (30%), combined heat and power generation (25%) and electricity transmission (16%).
Categories of items contracted under the Fund: on the basis of value (%)
The 53 Purchase Agreements concluded in the 01-06/2023 Reporting Period concerned mostly special purpose vehicles (33%), transformers (25%) and gas distribution station (23%).
How to become a supplier of needed items?
How to become a supplier of needed items?
In order to channel equipment offered by different suppliers, the Secretariat has set up a vendor’s questionnaire on its website. Prospective suppliers whose offer matches certain types of equipment are invited to express their interest via a two-step procedure:
- In order to express one's interest, the potential supplier should first fill in the below vendor template and provide information on the available items/services.
- As a next step, the consolidated template should be submitted via online questionnaire.
Tetra Tech ES, Inc., acts as procurement agent for the Ukraine Ministry of Energy and the Energy Community Secretariat. Whilst it selects the supplier and negotiates the terms and conditions of the Supply Agreement, the Energy Community Secretariat, acting as manager of the Fund, is responsible for the payment of the said goods and/or services.