The Ukraine Fund, managed by Norfund, is investing NOK 174 million (EUR 15 million) in a fund aimed at supporting investments in sectors that are critical for Ukraine’s reconstruction. The first project is a wind farm in the Odesa region. It will help strengthen energy security in a country where large parts of electricity generation have been destroyed by Russian attacks.
At the same time as major parts of Ukraine’s power supply have been knocked out by Russian strikes, the country is facing severe cold with temperatures below minus 20 degrees Celsius. On 14 January, President Zelensky declared a state of emergency in the energy sector.
Norfund has managed a dedicated Ukraine Investment Fund since December 2024. The fund is now investing in the Horizon Capital Catalyst Fund (HCCF), which simultaneously announces its first investment—a wind power plant being developed by Notus Energy.
Both agreements were signed today/20 January at Ukraine House in Davos, where Foreign Minister Espen Barth Eide participated. Energy was one of the key topics on the agenda when the Foreign Minister met President Zelensky earlier this month.
“These are funds Ukraine desperately needs — and needs now. Ukraine has enormous needs for investments in new energy production. Energy for heating, food, and everyday life is crucial for Ukrainians to endure this war. I am pleased that we can now also contribute to this through investments via the Ukraine Fund,”
Espen Barth Eide
Foreign Minister
The equity investment from HCCF enables Notus Energy to secure a package of loan financing that allows the company to begin construction of a 124 MW wind park in the Odesa region.
“We are pleased to have made solid progress in investing in Ukraine, and that we can now make our first investment in the energy sector through HCCF, which we hope will also attract more international investors to the country,”
Tellef Thorleifsson
CEO of Norfund
This is the third investment under the Ukraine Fund. With this investment, Norfund has deployed NOK 430 million of the NOK 500 million allocated to the fund for 2024 and 2025. The 2026 state budget sets aside an additional NOK 500 million for the fund.
HCCF aims to raise EUR 300 million and mobilize EUR 3 billion in investments in energy, digital infrastructure and building materials—sectors that are crucial for restoring the economy and securing basic services. HCCF is established by Horizon Capital, one of Ukraine’s leading private equity firms, with over 30 years of experience and USD 1.6 billion under management. In addition to Norfund, the fund has already secured commitments from EBRD, IFC, Swedfund, Proparco and FMO.
Facts about the Ukraine Fund
- Established on 19 December 2024, managed by Norfund, the Norwegian investment fund for developing countries
- Part of the Nansen Programme
- Aims to contribute to sustainable business development and job creation in Ukraine
- So far, Norfund has made investments totalling NOK 430 million through the fund