EBRD, Ukraine, Naftogaz Sign US $300 Mln Revolving Loan to Purchase Gas
The Minister of Finance of Ukraine Natalie Jaresko and the First Vice President of the European Bank for Reconstruction and Development (EBRD) Phil Bennett signed the sovereign guarantee agreement for the loan from the EBRD to finance gas purchases by Naftogaz of Ukraine.
The loan, which is a 3-year revolving facility, was then signed by Naftogaz CEO Andriy Kobolyev and the EBRD Managing Director for Energy and Natural Resources Riccardo Puliti.
‘The US$ 300 million loan funds are intended for the purchase of more than 1 billion cubic meters of gas at the western border of Ukraine. The EBRD loan is conditional on the implementation by the Government of Ukraine of the action plan to reform corporate governance at Naftogaz’ reads a note released on Friday.
As explained by Naftogaz, EBRD’s decision to provide such a loan is unprecedented. A framework of a revolving credit facility under a sovereign guarantee is used for the first time.
“An independent supervisory board and improved control mechanisms will promote efficiency and transparency of the group activity. We are grateful to the EBRD for their active participation in this process and to the European Commission for their support” Board Chairman Kobolev commented.
Ukrainian officials are paying an official visit to Germany. On Friday, Prime Minister of Ukraine Arseniy Yatsenyuk met with Federal Chancellor of Germany Angela Merkel in Berlin.
After their meeting, Yatsenyuk spoke of local elections.
“After the local elections, Donetsk and Luhansk will be represented only by those who win in the elections, instead of those who proclaimed themselves as leaders of Donetsk and Luhansk regions", he said in a note released in the afternoon.
Last Friday, the Cabinet of Ministers of Ukraine approved Naftogaz' governance reform plan facilitated by the European Bank for Reconstruction and Development (EBRD), which will introduce an independent supervisory board with ‘wide authority and responsibility.’