UGB Supports the Modernization of District Heating Systems in Ukraine with EIB, the EU Bank

UGB (Ukrgasbank) took part in an event dedicated to the new European Investment Bank (EIB) programme, "Ukraine District Heating", which is aimed at improving the  district heating systems, public buildings and resilience of communities.

The partnership with the EIB provides UGB with:

• €50 million in loan financing: At least 50% of the credit line will be allocated to district heating projects, with up to another 25% for photovoltaic projects.
• €30 million in grant support from the EU (for UGB and two other Ukrainian banks): Up to 50% grant intensity for investments in district heating and up to 30% for energy efficiency and renewable energy projects. The grant programme will be available in 9 regions (Kharkiv, Kherson, Sumy, Chernihiv, Dnipro, Zaporizhzhia, Poltava, Mykolaiv, Odesa) and in the de-occupied territories of the Kyiv region.

"We are helping communities increase energy efficiency, ensure the reliability of heat supply, and strengthen the resilience of critical infrastructure. Our mission is to make modern and effective energy solutions accessible to every community," noted Oleksandr Reshetnik, Director of the Municipalities and Public Sector Department at Ukrgasbank (UGB).

What projects does the bank support?

• CHPs, cogeneration, and decentralized heat generation;
• Heat networks and heat pumps;
• Solar PV and energy system resilience projects (including energy storage systems);
• Energy efficiency in public buildings;
• Enhancing the physical and cybersecurity of energy infrastructure.

The programme offers long-term financing (from 5 years) for projects ranging from €40k to €25 million. The partnership with the EIB guarantees a financial advantage for communities — an interest rate reduction of at least 0.25%.

Why UGB?

• In-house technical office
• Separate E&S (Environmental & Social) department
• Dedicated department for working with municipalities

We thank our international partners — EU and its bank the EIB, GIZ, UNDP — and the representatives of the communities for their productive cooperation.

21.10.2025