Ukrainian Raiffeisen Bank and Ministry of Economy agree on cooperation for energy efficiency and security of supply
At the beginning of March, a high-ranking delegation led by Minister of Economy Wolfgang Hattmannsdorfer traveled from Austria to Ukraine to further strengthen economic relations between the two countries.
At the beginning of March, a high-ranking delegation led by Minister of Economy Wolfgang Hattmannsdorfer traveled from Austria to Ukraine to further strengthen economic relations between the two countries. Raiffeisen Bank International (RBI) was represented by, among others, designated CEO Michael Höllerer and Valerie Brunner, Management Board member responsible for CIB Customer Coverage.
A milestone was the signing of a memorandum of understanding (MoU) by the Deputy Minister of Economy, Environment and Agriculture of Ukraine, Vitalii Kindrativ, and the CEO of RBI's Ukrainian subsidiary, Natalia Gurina. The MoU aims to promote nationwide cooperation on energy efficiency and security of supply. By modernizing infrastructure and mobilizing international financing for the reconstruction of the energy sector, the energy resilience of Ukrainian communities is to be strengthened. The plan is to primarily use export credit instruments with Austrian state guarantees.
"Due to outdated centralized infrastructure, war damage, and limited financial resources for rapid modernization, Ukraine's local authorities are currently facing systemic vulnerability in the energy sector. The willingness to cooperate, which we have expressed today in a joint statement, underscores the understanding of the Ministry of Economy and Raiffeisen Bank of the need to develop decentralized energy generation, modernize district heating systems, and use long-term structured financing mechanisms," Kindrativ explained.
Raiffeisen Bank sees the expansion of Ukraine's energy independence as a clear priority. Since the start of the war, loan applications totaling around 3.5 billion hryvnia (just under 70 million euros at the beginning of March) have already been signed. "We see the need to mobilize large sums of private capital for the reconstruction of Ukraine's energy infrastructure. International cooperation and risk mitigation instruments, such as Austrian export credit mechanisms, are essential for the provision of private capital," said Gurina.
The intensified economic partnership between Austria and Ukraine will not only contribute to Ukraine's reconstruction but also promote its alignment with EU standards for sustainability and energy efficiency.
