Naftogaz signs EUR 500 mln EBRD loan backed by EU guarantee for gas purchases
Naftogaz Ukrainy and the European Bank for Reconstruction and Development (EBRD) have signed a EUR 500 million revolving credit agreement, Prime Minister Yulia Svyrydenko announced Wednesday.
"This is the bank's largest project in our country. But most importantly – for the first time, such a loan is backed by an EU guarantee, with no state guarantee from Ukraine required," she said.
According to the prime minister, the loan will help Ukraine prepare for the heating season and ensure homes have heat and electricity even during the harshest winter days.
Naftogaz CEO Serhiy Koretsky said the agreement sends a clear signal that Ukraine's partners understand the scale of threats posed by Russia.
"Thanks to the EBRD and all our partners for their trust and support. I am grateful to the Ukrainian government for its efforts to strengthen Naftogaz's capabilities. Energy security today and energy independence in the future are our strategic priorities," he said.
The loan is the first to be issued under the EU's UIF Hi-Bar program, eliminating the need for a Ukrainian state guarantee.
"We are proud to support Naftogaz with this new loan – the largest we have ever signed in Ukraine. Our financing bolsters Ukraine's energy security, a key priority for our investments in the country, and will help keep Ukrainians warm and powered this winter and beyond," said EBRD Managing Director for Ukraine and Moldova, Arvid Tuerkner.
Naftogaz will purchase gas under competitive conditions from more than 30 prequalified suppliers, based on contracts aligned with the standards of the European Federation of Energy Traders (EFET). EFET, which unites more than 120 European companies, works to improve transparency and efficiency in Europe's energy markets, promote competition, and ensure reliable energy supplies.