The government plans to give €174 million to Naftogaz for gas imports

The Cabinet of Ministers of Ukraine, at its meeting on October 23, plans to allocate UAH 8.4 billion to Naftogaz for the purchase of imported natural gas. MP Yaroslav Zhelezniak reported this, according to ExPro.

Converted into foreign currency, Naftogaz will receive $200 million or €174 million.

"To prevent emergencies of a technogenic nature, allocate to the Ministry of Energy (for Naftogaz of Ukraine) UAH 8,400 million for the purchase of imported natural gas to ensure the stable passage of the 2025-2026 heating season," the draft Resolution of the Cabinet of Ministers reads, which is planned to be adopted on October 23.

The funds will be allocated from the reserve fund of the state budget through the Ministry of Finance on a non-repayable basis.

According to ExPro estimates, these funds may be sufficient to purchase 430 mcm of natural gas, considering current prices at European hubs.

As ExPro reported earlier, Norway will provide Naftogaz with $150 million for gas purchases at the beginning of next year. The EBRD is also preparing a new loan for Naftogaz.

It should be recalled that in early October, Naftogaz received a €300 million loan from the EIB, in August it secured a €500 million loan from the EBRD, as well as an approximately €85 million grant from Norway. These funds are already being used for winter gas imports.

In addition, Naftogaz received loans from Ukrainian state-owned banks for gas procurement: €62.2 million from Oschadbank, €96 million from PrivatBank, €96 million from Ukrgasbank, as well as $59.3 million from Ukreximbank to finance the production needs of Ukrgazvydobuvannya.

Where to find natural gas market analytics?

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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