The Ukraine Energy Support Fund maximises impact through tax exemptions amid energy crisis

 

The first items procured under the Ukraine Energy Support Fund (UESF), benefiting from a tax exemption and supporting the rehabilitation of war-damaged energy infrastructure, are now crossing the border into Ukraine. These critical supplies arrive as winter takes hold and Ukraine faces renewed Russian attacks on its energy infrastructure.

This follows the adoption of laws over the summer granting tax exemptions for items imported under agreements funded by the Ukraine Energy Support Fund, managed by the Energy Community Secretariat. A wide range of equipment, including gas turbines, generators, solar panels, and batteries, has been procured from international suppliers.

“We expect that the tax exemptions will result in significant cost savings, particularly for high-value items. This unique feature maximises the utilisation of donor contributions,” said Artur Lorkowski, Director of the Energy Community Secretariat. “We hope the increased efficiency of the Fund and reduced costs will encourage further international support and investment in Ukraine's energy sector.”

The tax and duties exemption are vital for bolstering Ukraine’s energy infrastructure, which is under continuous threat from targeted Russian attacks. The UESF has proven to be the fastest and most effective mechanism to address urgent energy needs on the ground.

In 2024 alone, Ukraine has lost 9 GW of installed generation capacity due to these attacks. In recent days, Russian forces have launched another wave of targeted attacks on energy infrastructure, according to recent media reports.