Naftogaz secures $314mn EBRD loan for gas purchases
The European Bank for Reconstruction and Development (EBRD) has provided a €300mn ($314mn) loan to Ukraine's Naftogaz to cover the purchase of natural gas imports, the two sides announced on June 14.
Following a loss of domestic gas supply as a result of Russia's invasion, Ukraine is scrambling to build up its gas reserves ahead of next winter. Naftogaz will spend an initial €50mn on emergency gas purchases, and aims to raise a total of €1bn to buy up to 1bn m3 of gas this year.
EBRD shareholders will guarantee two thirds of the loan, which is also backed by Ukraine's sovereign guarantee.
“The urgency to act is clear. Gas is needed: for the next heating season, for electricity production, and more broadly for supporting the economy," EBRS president Odile Renaud-Basso said in a statement. "The replenishing of gas stocks must start now to avoid serious consequences in the autumn. This operation is very simply about providing heating to the people and economy of Ukraine."