IFC about financing Ukrainian energy projects

As part of the Ukrainian Wind Energy Forum 2025, the International Finance Corporation (IFC), in an exclusive comment for ExPro Electricity, assessed the current investment climate in Ukraine and the financing of energy projects.

IFC currently ready to finance new wind energy initiatives in Ukraine?

Yes, IFC is actively financing new wind energy initiatives in Ukraine and has already taken concrete steps to support the sector which is a priority focus area across the World Bank Group. In April 2025, IFC, together with the European Bank for Reconstruction and Development (EBRD) and Black Sea Trade and Development Bank (BSTDB), announced a €157 million international finance package to support one of the first greenfield private projects in the country's power sector since the beginning of Russia's invasion of Ukraine in 2022. This marked a major milestone in Ukraine's energy transition. The investment supports a 147 MW onshore wind power project being developed by GNG Group or Galnaftogaz, widely known in Ukraine as OKKO Group. IFC committed a €60 million financing package, supported by the European Union (EU), the United Kingdom, and CIF's Clean Technology Fund (CTF). IFC has also been working with Ukrainian banks (Raffeisen Bank Ukraine, Ukrsibbank and Credit Agricole Ukraine) to support the financing of small-scale renewable energy generation and energy efficiency projects through a €316 million risk-share facility program.

Looking ahead, IFC is already considering additional investments in the energy sector, with a particular focus on helping Ukraine further scale its wind energy. IFC is considering over 560MW of additional wind power projects across three projects which are undergoing due diligence and is pending IFC management and Board approval. These include OKKO Group's second greenfield onshore wind power project in Ukraine, a corporate facility with a leading existing renewable energy player, and a project financing for a project with an international investor. Beyond these immediate transactions, IFC has a forward-looking pipeline for the next 18 months that includes additional projects in essential infrastructure, with a strong focus on energy. We are confident that supporting the renewable energy sector is critical, especially in light of ongoing attacks on Ukraine's energy infrastructure and the government's strategic shift toward alternative energy sources to enhance system resilience.

As part of the World Bank Group, IFC remains firmly committed to supporting Ukraine both during Russia's invasion and throughout its post-invasion recovery.

What criteria does IFC apply when selecting energy projects in Ukraine?

When selecting energy projects in Ukraine, IFC applies a rigorous set of criteria to ensure that each investment delivers meaningful impact, aligns with strategic priorities, and is viable for long-term success. First and foremost, the project must be important for the country. Given the ongoing invasion and frequent attacks on energy infrastructure, IFC prioritizes projects that contribute to system stability and help diversify energy sources. Alignment with both the Government of Ukraine's strategy and IFC's strategic priorities is also essential. IFC seeks to support initiatives that advance the country's efforts to develop renewable energy and its commitment to EU integration, while also contributing to the World Bank Group's broader mission of sustainable development. In addition, IFC looks for projects of a certain scale and potential to replicate across the country. This is particularly important in Ukraine, where IFC often plays a catalytic role by bringing in co-investors.

Larger projects not only deliver greater impact but also allow IFC to structure financing in ways that reduce risk and attract commercial partners. Ultimately, IFC selects energy projects that combine strategic relevance, strong sponsor capacity, and financial viability, with the potential to scale. This approach ensures that each investment contributes meaningfully to Ukraine's energy resilience and long-term recovery. What financial instruments does IFC offer to investors? IFC offers a range of financial instruments tailored to Ukraine's current needs. These include long-term loans, equity investments, and risk-sharing products that combine IFC's own account financing with donor funding to de-risk projects.

We also work with other development institutions to share risks on equal basis participating in trade finance and to co-finance some transactions.

In addition to financing, IFC can work with partners during the pre-investment stage to help develop bankable projects—offering advisory support and helping with early-stage structuring to ensure readiness for investment.

How does IFC assess the impact of the war on the investment attractiveness of Ukraine's renewable energy sector? Could you provide examples of IFC's successful financing of wind energy projects in Ukraine?

IFC assesses the impact of the invasion on Ukraine's renewable energy sector by examining both the extent of damage and the opportunities for recovery, with a particular focus on what role the private sector can play. According to the World Bank's Fourth Rapid Damage and Needs Assessment (RDNA4), the energy sector has suffered severe destruction, with damage to generation, transmission, and distribution infrastructure increasing by 70% since the previous assessment in 2023. This underscores the urgent need for investment in resilient, decentralized energy systems. Despite these challenges, IFC's recent investment in a wind power project with GNG (OKKO Group) proves that the sector remains attractive and that impactful investments are possible even during wartime. This transaction reflects IFC's confidence in the sector's long-term viability and its ability to mobilize additional private capital, subject to continued reforms and efforts to support transaction bankability.

According to IFC's report Private Sector Opportunities for a Green and Resilient Reconstruction in Ukraine, the energy sector alone could attract up to $39 billion in private investment by 2033 under a reform-driven scenario. This would represent a significant share of the country's overall reconstruction needs and highlights the critical role of private capital in rebuilding Ukraine's energy infrastructure.

In short, while the invasion has caused extensive damage, IFC's investments and analysis show that Ukraine's renewable energy sector remains investable, and that—with the right reforms and risk mitigation—private sector participation can drive the country's resilient recovery.