The European Bank for Reconstruction and Development and Ukrainian authorities have agreed the repurposing of part of an existing loan to country’s electricity transmission company Ukrenergo to provide EUR 50 million of emergency liquidity. The aim is to keep the lights on in a country whose economy has been hard hit by February’s invasion by Russia.The European Union’s European Fund for Sustainable Development, the financing arm of the EU External Investment Plan promoting investment in Africa and the EU Neighbourhood, is providing a first loss guarantee. This will partially mitigate the EBRD’s risk of non-repayment in the current war environment. The EBRD has pledged to invest EUR 1 billion this year in supporting the Ukrainian economy, with donors and partners.The EBRD originally agreed to lend EUR 149 million to Ukrenergo in July 2019 to upgrade key transmission infrastructure required to maintain system stability and back-up synchronisation with European electricity networks, as well as help Ukraine align its legal framework and operational practices with the EU 3rd Energy Package. The loan has yet to be disbursed.The war has triggered urgent liquidity needs that prompted Ukrenergo to seek the repurposing of these funds. It needs to enable the stable functioning of the Ukrainian electricity grid as well as nuclear generators and maintain power supplies to industries and households. Since the war began, the company has been contending with substantial non-payments by its customers coupled with a 30 per cent reduction in electricity consumption and resulting revenue losses.