PrivatBank to provide $113 million loan to Naftogaz for gas purchases

PrivatBank and Naftogaz have agreed on a loan of $113 million (€96 million or UAH 4.7 billion), according to Naftogaz CEO Sergii Koretskyi.

The funds raised will be used to purchase natural gas, thereby accumulating the necessary reserves in underground storage for the upcoming heating season. As ExPro reported, as of April 17, gas reserves in Ukrainian UGS facilities exceeded 9 bcm, while at least 1.5 bcm of gas needs to be imported in August–October to prepare for winter.

Currently, Naftogaz mainly purchases imported natural gas, injecting 20 to 25 mcm of imported resource per day into the “customs warehouse” of Ukrainian UGS facilities.

How much gas can be imported?

At today’s natural gas prices in Europe (about $400/tcm), the raised loan could cover around 280 mcm of natural gas. Thus, the funds will enable Naftogaz to continue the July import pace for 10–12 days in August.

Naftogaz also notes that negotiations are underway with international financial institutions and partner countries.