Ukraine and Finland sign agreement on equipment for gas engine power plants

Ukraine and Finland have signed a framework agreement on the supply of equipment for gas engine power plants.

According to Ukrinform, First Deputy Prime Minister and Minister of Energy Denys Shmyhal announced the deal on Facebook.

He noted that Ukraine and Finland are strengthening cooperation in distributed generation. “During our meeting with Finnish Prime Minister Petteri Orpo, a framework agreement was signed between JSC Ukrnafta and Wärtsilä for the supply of complete equipment for gas engine power plants,” Shmyhal stated.

He explained that together with the Finnish-Ukrainian Investment Facility (FUIF) and JSC Ukrnafta, a phased program for deploying distributed gas engine generation will be implemented.

Under the first stage, an EBRD loan of €80 million has already been secured, with a signed credit agreement, state guarantee, and ongoing procurement under EBRD procedures. For subsequent stages, Ukraine plans to use FUIF financing to scale up the program, including through the installation of gas engine power plants based on Wärtsilä equipment.

“All related projects are aimed at strengthening regional energy security, balancing Ukraine’s unified power system, and ensuring the resilience of critical infrastructure,” Shmyhal emphasized.

As reported, Shmyhal and Orpo discussed enhanced energy cooperation and support for Ukraine during talks in Helsinki.

Photo credit: Denys Shmyhal/Facebook