War and Energy: Weekly Review of Developments in Ukraine
The Zaporizhzhia NPP regained external power, while the government announced a new war-risk insurance scheme and, at the same time, a sharp rise in gas prices for public institutions.
Key developments of the week
- On 7 September, external power supply to the temporarily occupied Zaporizhzhia NPP was restored via the 330 kV Feroslavna-1 overhead line. Since 20 August the plant had been without off-site power and relying on emergency diesel generators.
- From 1 January 2027, the government plans to launch an expanded war-risk insurance programme for businesses through the Export Credit Agency. About USD 1 billion in state funds is earmarked for it, with international partners to be brought in later. The programme would compensate 40–50% of first losses up to a limit of USD 10 million, with an insurance rate of 2% of the coverage amount. As a source of additional budget revenue to fund it, raising the VAT rate from 20% to 21% is proposed.
- As of early September 2026, banks under the energy infrastructure recovery memorandum had financed business projects worth UAH 58.5 billion (+4.3% month on month) and household projects worth UAH 4.8 billion (+11.6%). These include generation restoration totalling 2.014 GW (+3.9%) and energy storage and heating equipment modernisation totalling 895 MW (+10.1%). The gross portfolio of "energy" loans reached UAH 37.6 billion for businesses (+4.4%) and UAH 3.5 billion for households (+6.1%), with financing covering 21 regions.
- According to the Association of Ukrainian Cities, a government committee on recovery supported a draft amendment to the gas market public service obligation (PSO) that would raise the gas price for public institutions from UAH 16,390 to UAH 25,875 per thousand cubic metres including VAT. That is an increase of UAH 9,485 per thousand cubic metres, or almost 58%.
- Naftogaz's Supervisory Board decided to hold an open competition for the position of Chairman of the Management Board, engaging an international executive search firm. The selection will be supported and coordinated by the EBRD.
- Ukraine and Canada signed a Joint Statement on deepening energy cooperation. It provides for CAD 757 million of support via the EBRD for gas purchases ahead of the heating season, a CAD 10 million contribution to the Ukraine Energy Support Fund, and CAD 200 million from Export Development Canada for priority energy projects.