Naftogaz receives a €300 million loan from the EIB

The Naftogaz Group has signed a new loan agreement with the European Investment Bank (EIB) for €300 million, the company’s press service reports.

The funds will be used to purchase gas to build long-term stocks and to ensure a stable gas supply during the winter following damage to the country’s infrastructure caused by Russia’s ongoing attacks.

“This new financing from the EIB will help strengthen Ukraine’s energy security during the winter period, providing vital support for communities and businesses,” noted the President of the EIB Group Nadia Calviño.

The financing is implemented under the EIB’s Ukraine Energy Support Plan and is backed by a European Commission guarantee under the Ukraine Investment Framework (UIF).

“€300 million from the EIB is substantial and practical support that will help us guarantee the country’s energy resilience on the eve of winter. I sincerely thank the President of Ukraine, the Government, and the Prime Minister for their support, as well as our European partners for their trust and solidarity,” emphasized Chairman of the Management Board of Naftogaz Serhiy Koretskyi.

“The €300 million agreement between the EIB and Naftogaz shows the real results of Ukraine’s partnership with the bank of the European Union. Thanks to this financing, Ukraine will be able to secure gas stocks and a stable heat supply this winter for the homes of hundreds of thousands of people, even under constant enemy shelling. This agreement is also a continuation of Naftogaz’s transition to renewable energy and decarbonization. This is an important step towards building a modern energy system and integrating Ukraine into the European Union,” said Prime Minister of Ukraine Yulia Svyrydenko.

The agreement was signed in the presence of the Minister of Economy, Environment, and Agriculture Oleksii Sobolev and the European Commissioner for Enlargement Marta Kos during her visit to Kyiv.

Under this agreement, the Naftogaz Group undertakes to reinvest an amount equivalent to the European Investment Bank’s loan in renewable energy and decarbonization projects.

As reported by ExPro, in August Naftogaz attracted a €500 million loan from the EBRD, as well as a grant of about €85 million from Norway. These funds are already being used to purchase imported gas for the winter.

In addition, Naftogaz received loans from Ukrainian state-owned banks for gas procurement: €96 million from PrivatBank and €96 million from Ukrgasbank, as well as $59.3 million from Ukreximbank to finance Ukrgazvydobuvannya’s production needs.

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Detailed analytics of the natural gas market in Ukraine, including production, imports, exports, UGS reserves, trading results, natural gas prices, key news, etc., are published in specialized publications ExPro Daily Gas, ExPro Gas&Oil Weekly, and ExPro Gas&Oil Monthly.

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