Ahead of a harsh winter, the Netherlands is giving Ukraine €1.2 billion to keep the lights and water on under Russian strikes. Dutch Minister for Foreign Trade and Development Cooperation Sjoerd Sjoerdsma announced the aid during a visit to Kyiv on 28 October.

The package comes as Russia targets Ukraine’s energy system every winter. Last winter’s strikes damaged or destroyed roughly 80% of the grid, and Moscow’s next target is Ukraine’s water supply.

“Ukraine is under heavy fire and faces a very harsh winter,” Sjoerdsma said.

That, he stated, is why the government is taking additional steps now. The funds will be distributed over the next three years.

Earlier, Ukrainian President Zelenskyy said Kyiv needed $8-10 billion to get through winter, TSN reported.

The Netherlands shores up Ukraine’s power and water

Also, the Netherlands is fast-tracking €40 million this year to Ukraine’s Energy Support Fund for urgent repairs to power and water facilities, which are increasingly targeted by Russian strikes.

Another €55 million goes to in-kind support: energy equipment supplied by Dutch companies to Ukrainian partners through the Netherlands Enterprise Agency.

The money will also help build emergency reserves and train staff in the energy and water sectors.

Dutch business steps into Ukraine’s reconstruction

Most of the rest goes to business. Some €136 million will go to the Partnership Facility with Ukraine and other programs, and a further €19.5 million is added to export credit insurance, on top of an existing €60 million line, to lower the risk for Dutch companies entering the Ukrainian market.

Separately, the Netherlands signed a letter of intent to contribute €10 million to President Volodymyr Zelenskyy’s “Industrial Ramstein” initiative, which aims to restore and modernize the production capacity of Ukrainian companies. Sjoerdsma traveled to Kyiv with Koen van Oostrom, chair of the business association VNO-NCW.

The support also covers the search for Ukrainian children abducted by Russia, through the UN, as well as housing, humanitarian aid, healthcare, demining, and the restoration of cultural heritage.

In all, the Netherlands is confirming the previously promised €878 million in non-military aid and an additional €327 million, much of it delivered through the EBRD, the World Bank, and the European Investment Bank.

The same day, President Zelenskyy said he had arrived in the Netherlands on an official visit. The two sides plan to discuss defense and economic cooperation, strengthening Ukraine’s air defenses, and further support for Ukraine. Zelenskyy is also set to have an audience with King Willem-Alexander of the Netherlands.

BlackRock, a U.S. investment firm, suspended work on a multibillion-dollar Ukraine recovery fund following U.S. President Donald Trump's election victory, prompting France to work on a replacement, Bloomberg reported on July 5.

The plan nearly secured the initial support of institutions backed by the governments of Germany, Italy, and Poland, people familiar with the matter told Bloomberg.

Kyiv has sought to secure investment in Ukraine's reconstruction as Russia's war continues to destroy infrastructure across the country.

BlackRock halted its search for institutional investors in January, causing the planned funding that sought to secure $500 million from governments, development grants, and investment banks, and another $2 billion from private investors, to fall through.

The investment firm halted talks with institutional investors in January due to a lack of interest amid perceived uncertainty in Ukraine.

The fund was set to be unveiled by BlackRock at the upcoming Ukraine Recovery Conference on July 10-11 in Rome, Bloomberg reported.

A spokesperson for BlackRock said the investment firm completed advisory work for the recovery fund pro bono in 2024 and no longer has "any active mandate."

France is working on a proposal to replace the recovery fund led by BlackRock, people familiar with the matter told Bloomberg, adding that it remains uncertain how effective the plan will be without Washington's backing.

President Volodymyr Zelensky and Italian Prime Minister Giorgia Meloni are expected to attend the Ukraine Recovery Conference next week.

Despite a partial rebound from a 30% economic slump in 2022, foreign investment in Ukraine remains underwhelming.

As US aid to Ukraine dries up, new platform connects Americans investors with Ukrainian startups

Ukraine’s startup ecosystem has tripled in five years, even during Russia’s full-scale invasion, to become the second most valuable in Central and Eastern Europe at $28 billion.

The Kyiv IndependentDominic Culverwell