The Ukrainian parliament (Verkhovna Rada of Ukraine) ratified NEFCO’s framework agreement on Tuesday prior to NEFCO’s Board meeting in Kyiv on Wednesday the very same week.
The agreement acknowledges NEFCO’s status as an international financial institution in Ukraine. This will pave the way for new energy efficiency projects in the country.
NEFCO has financed environmental projects in Ukraine since 2003. However, these financial arrangements have not included the framework agreement, and this has prevented NEFCO from financing ventures such as municipal energy projects in the country.
”We currently have 84 projects in the pipeline in Ukraine, and many of them can now be implemented thanks to the new framework agreement”, says NEFCO’s Managing Director, Magnus Rystedt.
NEFCO has so far approved EUR 52.7 million EUR finance for environmental projects in Ukraine. The projects have mainly been in the energy, agricultural, industrial and banking sectors. Most of the projects have included technological measures to reduce energy consumption and the releases of carbon dioxide or other climate gases.
The Ukrainian loans currently account for 11.5 per cent of funds disbursed by NEFCO’s two main financial instruments; the Investment Fund and the Nordic Environment Development Fund.