War and Energy: Weekly Review of Developments in Ukraine
The draft 2027 budget confirmed energy resilience as a priority, while regional and US investment and regulatory changes laid the ground for integration with the EU market.
Key developments of the week
- The draft 2027 State Budget allocates almost UAH 100 billion in spending to the energy sector. Of that, UAH 60 billion is planned for protecting and restoring energy facilities and developing distributed gas generation under the Resilience Plans.
- Following a competitive selection, Energoatom's Supervisory Board named Yurii Tkachuk the winner for Chief Executive Officer (CEO) and Pavlo Pavlyshyn for Chief Nuclear Safety Officer (CNO). Their appointments will follow completion of the legal, regulatory and corporate procedures.
- The government expanded its experimental programme of state financial support for businesses in distributed generation: preferential lending now also covers the restoration and protection of fuel infrastructure. Support takes the form of partial compensation of the interest rate on bank loans. Under the new terms, compensation is 5.5% per annum of the bank's base rate, the minimum loan is UAH 100 million (UAH 30 million for frontline areas), and the cap for a group of related companies is UAH 1 billion.
- At the Carpathian 8 summit, Ukraine and eight partner countries of the Carpathian region agreed on investment and trade deals worth more than EUR 1 billion, almost half of which relate to energy.
- The Naftogaz Group signed a memorandum with Hungary's MOL on building oil product storage facilities in Hungary near the Ukrainian border.
- In June–August 2026, companies received equipment funded by the Ukraine Energy Support Fund for restoring infrastructure, including 380 transformers and three gas turbine power plants with a combined capacity of 75 MW. A further EUR 5 million went to the physical protection of energy facilities.
- The DFC approved one of its largest loans for Ukraine, to finance DTEK's already commissioned energy storage systems of 200 MW and 400 MWh, built using American technology.
- NEURC published several draft regulatory changes for the electricity market. They include dynamic prices for consumers with smart meters and a mechanism for zero and negative prices and netting on the day-ahead and intraday markets, as part of preparing for EU market integration. The regulator is also starting its routine review of price caps on the day-ahead, intraday and balancing markets; the draft preliminarily proposes leaving them unchanged.