The Cabinet of Ministers of Ukraine has approved the allocation of nearly UAH 939 million in financing provided under Ukraine’s cooperation with Finland for the development of distributed generation projects.

The funding is being provided under the Framework Agreement between the Government of Ukraine and the Government of the Republic of Finland, signed in November 2024. The agreement envisages credit financing through the Finnish-Ukrainian Investment Fund for various projects aimed at Ukraine’s recovery and resilience.

Under the Government’s decision, a portion of these funds will be redirected to a new budget programme supporting critically needed distributed generation capacity in Ukraine.

According to First Deputy Prime Minister of Ukraine and Minister of Energy Denys Shmyhal, the financing will support projects implemented by Ukrnafta, which is actively expanding its power generation activities, primarily based on domestically produced natural gas. The projects involve the installation of gas-fired generation facilities in two regions: up to 40 MW in Ivano-Frankivsk Region and up to 20 MW in Lviv Region.

“I am grateful to the Government for adopting this decision and to our Finnish partners for their trust and support. This funding will enable the rapid deployment of new generation capacity, strengthen regional energy security, and ensure reliable electricity supply for households and businesses,” Denys Shmyhal emphasized.