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U.S., Germany to create $1 billion Green Fund for Ukraine’s energy

Source : 112 Ukraine

Moreover, Germany will continue to promote bilateral energy projects with Ukraine, especially in the field of renewable sources and energy efficiency
13:06, 22 July 2021

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The U.S. and Germany made a decision to make the energy transition the main task in the developing countries and focus on the support of Ukraine and other countries of Central and Eastern Europe within the partnership in climate and energy spheres as the Foreign Ministry of Germany reported.

“These efforts will not only contribute to the fight against climate change but will support European energy security by reducing demand for Russian energy. In line with these efforts, Germany commits to establish and administer a Green Fund for Ukraine to support Ukraine’s energy transition, energy efficiency, and energy security. Germany and the United States will endeavor to promote and support investments of at least $1 billion in the Green Fund for Ukraine, including from third parties such as private-sector entities,” the message says.

Related: Germany to get from Russia extension of agreement on gas transit via Ukraine after 2024

Initially, Germany will contribute at least $175 million as the grant and it will work on the increase of its contributions for the next financial years.

The Fund will promote the use of renewable energy; facilitate the development of hydrogen; increase energy efficiency; accelerate the transition from coal; and foster carbon neutrality.

The U.S. plans to support the initiative through technical and strategic aid in accordance with the goals of the Fund additionally to programs of support of the market integration, reform of regulation and development of the renewable sources of energy in the Ukrainian energy sector.

Moreover, Germany will continue to promote bilateral energy projects with Ukraine, especially in the field of renewable sources and energy efficiency, as well as coal transition support. This task supposes the appointment of a special envoy with dedicated funding of $70 million. 

Related: Ukraine, Poland to oppose alongside Nord Stream 2 launching

Germany is also ready to launch the set of resilience measures for Ukraine that will support the energy security of Ukraine. It includes the efforts on the provision and increase of possibilities for return of gas to Ukraine for complete protection of the possible future attempts of Russia to reduce supplies of the gas.

It will also include technical assistance for Ukraine’s integration into the European electricity grid, building on and in coordination with the ongoing work by the EU and the U.S. Agency for International Development.

Moreover, Germany will facilitate Ukraine’s inclusion in Germany’s Cyber Capacity Building Facility, support efforts to reform Ukraine’s energy sector, and assist with identifying options to modernize Ukraine’s gas transmission systems.

The document notes the possibility of sanctions against Russia, including restrictions for export of the energy source materials, in case if Moscow tries to use the Nord Stream 2 gas pipeline as a weapon against Ukraine.

Earlier, it was reported that the U.S. and Germany are about to make a deal on Nord Stream 2, which can foresee sanctions and other measures against Russia if it tries to use energy as a weapon against Ukraine.

Related: Merkel, Putin discuss Donbas, gas transit through Ukraine, Nord Stream 2

On June 4, President of Russia Vladimir Putin stated that the laying of the first line of the Nord Stream 2 was finished.

Meanwhile, German government spokesman Steffen Seibert stated that it is extremely important for Berlin to maintain Ukraine's status as a gas transit country even after Nord Stream 2 is put into operation.

Earlier, Dmytro Kuleba stated that Ukraine is ready to negotiate compensation for the loss of cash proceeds from gas transit after the launch of the Nord Stream 2 gas pipeline. 

US Secretary of State Anthony Blinken assured that Washington together with Berlin are working to prevent Russia from using the Nord Stream 2 gas pipeline as a coercive tool against Ukraine and other Eastern European countries. 

 

 

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