The Ukraine is to benefit from European Investment Bank funding, a major component of which will be designated for district heating aimed at assisting energy security.
The country is receiving €400 million (£284m) for energy projects in medium and large municipalities.
The aim is to protect, rehabilitate and avoid deterioration of infrastructures in the conflict-ridden country.
The EIB funding which will support between 25 and 40 programmes and will focus on energy efficiency such as district heating or efficient buildings and municipal lighting.
They will also help reduce water waste and improve solid waste management services.
László Baranyay, EIB Vice President, responsible for lending operations in Ukraine said: “Modern and reliable municipal infrastructure will contribute to the increase of the quality of life of people living in Ukrainian cities. It will help to save energy, provide better and more economical services and help to protect the environment.”