Naftogaz of Ukraine and the European Bank for Reconstruction and Development have signed an agreement for a revolving loan of 500 million euros. The funds will be used to finance natural gas purchases.
This was reported by Naftogaz of Ukraine.
According to the company, this is the largest project ever signed by the EBRD in Ukraine and one of the largest in the bank’s history. For the first time, the loan is being provided under a European Union guarantee under the UIF Hi-Bar program, which will not require a state guarantee from Ukraine.
“Our financing supports Ukraine’s energy security — a key priority of our investments in the country — and will help provide Ukrainians with heat and energy this winter and beyond,” said Arvid Törknér, Managing Director of the EBRD in Ukraine and Moldova.
The Naftogaz Group will purchase gas on competitive terms from more than 30 suppliers based on contracts concluded in accordance with the standards of the European Federation of Energy Traders (EFET), an organization that brings together more than 120 European companies and aims to increase the transparency and efficiency of the European energy market, promote competition, and ensure reliable energy supplies.