Ukraine is receiving €400 million (£284m) for energy projects in medium and large municipalities.
They aim to protect, rehabilitate and avoid deterioration of infrastructures.
The cash is provided by the European Investment Bank (EIB), which will support between 25 and 40 programmes.
They will focus on energy efficiency such as district heating or efficient buildings, municipal lighting and contribute to the country’s energy security.
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 environment.”