In early February, the Cabinet of Ministers launched a new initiative to help small businesses maintain operations during the energy crisis. The program offers direct cash grants for power equipment to ensure economic stability and protect Ukrainian businesses from being forced to halt operations.
According to the Ministry of Economy, the program is a response to ongoing blackouts caused by Russian attacks on Ukraine’s energy infrastructure. Four days after the initiative was launched on Feb. 2, the state had financed approximately 14,400 applications from entrepreneurs, with the total amount of funds provided amounting to almost Hr.144 million ($3.3 million).
“Small business is the basis of the local economy. For them, a stable energy supply is critical for continuous work,” the ministry wrote in its press release.
Under the scheme, sole proprietors can receive between Hr.7,500 ($174) and Hr.15,000 ($348). These funds are available to micro and small businesses in the country’s second or third tax brackets. Entrepreneurs with fewer than 10 employees who provide services to the public or other taxpayers under a simplified taxation system are also eligible, as is a third sole proprietor group with a universal form of business and an unlimited number of employees. To qualify, entrepreneurs must have employees and no social tax arrears.
The funds can be used to buy, rent, or maintain energy equipment, as well as for fuel for generators. The deadline for applications is Mar. 31.
Zero-interest Energy Loans Under “5-7-9%” Program
In parallel with the grant scheme, the government is using the existing “5-7-9%” affordable loan program to provide 0% interest energy credits. This tool is designed for the purchase of gas turbine, gas piston, and biogas plants, as well as diesel and gasoline generators.
The “5-7-9%” program is Ukraine’s flagship state-subsidized lending initiative, launched by President Volodymyr Zelensky in 2020. Under the program, Ukraine’s banks provide loans with discounted interest rates of 5%, 7%, or 9% – significantly lower than the average market 15-20% interest rates at the time of launch of the initiative. The state covers the difference between the market and concessional interest rates.
Under the new energy amendment of the concessional loan, the interest rate is dropped to 0% for up to three years, with a maximum loan amount of Hr.10 million ($231,800).
Entrepreneurs have already submitted 362 applications totaling Hr.413.9 million ($9.6 million), and the program has already issued its first energy credit – by state-owned Oschadbank – for the amount of Hr.1.15 million ($26,600), the bank reported in a press release sent to reporters by email on Friday, Feb. 6.
As Russia continues to attack Ukraine’s energy infrastructure, businesses are aiming to create decentralized energy sources to support its autonomy. According to the National Bank of Ukraine (NBU), banks financed business projects to develop almost 1.3 gigawatts of new power generation capacity between June 2024 and December 2025. During this period, banks provided a total of Hr.33.5 billion ($776 million) for energy restoration projects across 21 regions of Ukraine.