Naftogaz starts purchasing 1 bcm of gas with EBRD funds

Naftogaz of Ukraine is using the funding to purchase 1 bcm of natural gas abroad, which will be imported to Ukraine in preparation for the next heating season, the company's press service reports.

EBRD Funds

Naftogaz received a total of €410 million for purchasing natural gas, of which the European Bank for Reconstruction and Development (EBRD) loan is €270 million. The loan is provided under sovereign state guarantees.

In addition, the Government of Norway, through the NORAD Foundation, provided grant funding to Naftogaz of €140 to purchase natural gas. The funds will also be disbursed through the EBRD.

The respective loan and grant agreements were signed by Roman Chumak, CEO of Naftogaz Group, and Mark Magaletsky, Deputy Managing Director of the EBRD in Ukraine.

"The funds received are extremely important for Naftogaz. They will allow us to purchase almost 1 bcm of gas, which is critical for the stable passage of the next heating season, especially in the context of war and regular attacks on our energy infrastructure. I am grateful to all partners who help Naftogaz prepare for the next winter," said Roman Chumak, CEO of Naftogaz.

Agreement between the EBRD and the Government

On April 25, in Washington, DC, Prime Minister Denys Shmyhal and EBRD President Odile Renaud-Basso signed an agreement between Ukraine and the EBRD to strengthen Ukraine's energy resilience.

The agreement envisages a €270 million loan from the EBRD under state guarantees and will be accompanied by a €140 million grant from the Government of Norway.