Canada to boost investments in Ukraine's energy sector

By Kate Abnett and America Hernandez

PARIS, Feb 18 (Reuters) - Canada will step up support to Ukraine's energy sector, working with industry to supply oil and gas equipment on favourable terms and boost renewable energy investments, the two governments said on Wednesday.

Russia has targeted power stations, electricity transmission lines and gas facilities as part of its full-scale invasion of Ukraine, which began in February 2022. Russian strikes this week on Ukrainian power infrastructure killed three people and left tens of thousands without power and heat.

On Wednesday, Ukraine and Canada agreed on a strategic energy partnership at a meeting in Paris, where Canada's government said it would work with industry to transfer oil and gas sector equipment to Ukraine on concessional terms, and promote investments in Ukraine's energy security.

Canada will also alert domestic industries to opportunities to invest in Ukrainian renewable energy projects and reconstruction of hydropower plants, according to the published agreement.

"This is not simply reconstruction. It is modernization under pressure," Canadian energy minister Tim Hodgson told reporters.

RISK ASSESSMENTS TO COUNTER HYBRID THREATS

The two sides will carry out risk assessments and exercises to counter hybrid threats to energy infrastructure, and strengthen commercial relations on nuclear fuel supply.

The deal, which includes sharing technical advice on developing infrastructure for non-Russian gas supplies to Ukraine, is not legally binding and planned investments would need to be followed up with companies.

Ukraine is emerging from its coldest winter since Russia's 2022 invasion. Russia's air strikes have caused days-long outages of electricity, water and heating as temperatures have sunk as low as minus 20 degrees Celsius, while households and businesses that still have power face soaring energy bills.

Ukraine's central bank last month revised down its growth forecasts for this year to 1.8% from 2% because of the energy crisis. Its energy minister said last week that power demand was about a third larger than supply capacity.