EBRD has provided EUR 1.6 bln in financing to Naftogaz since start of war

The European Bank for Reconstruction and Development (EBRD) has provided a total of EUR 1.6 billion in financing to Naftogaz Ukrainy since the start of Russia's full-scale invasion in 2022, the bank said in a press release Wednesday.

This announcement followed the signing of a EUR 500 million revolving credit facility for Naftogaz to purchase natural gas. According to Ukrainian Prime Minister Yulia Svyrydenko, it is the bank's largest project in Ukraine and the first to be backed by an EU guarantee without a Ukrainian state guarantee.

"This is the fourth finance package the EBRD has provided for Naftogaz since Russia launched its full-scale war on Ukraine in 2022. It brings the total Bank financing to Naftogaz to EUR 1.6 billion, including EUR 1.27 billion in EBRD loans and EUR 330 million (NOK 3.63 billion) in grants provided by Norway via EBRD," the bank said.

The EU guarantee covers 90% of the latest EUR 500 million revolving credit under the EU's Ukraine Investment Framework, aimed at unlocking financing for the country's recovery and long-term growth.

"The latest EBRD finance to Naftogaz follows major Russian attacks on the company's upstream gas production and processing facilities in the first half of 2025. These have resulted in significant production losses for the year, as the company rebuilds its damaged operations, and created the need for more gas imports," the bank explained.

For the first time, the credit is issued under the EU's UIF HI-BAR programme, requiring no Ukrainian state guarantee.

Naftogaz Group will purchase gas on competitive terms from over 30 pre-qualified suppliers, using contracts compliant with standards of the European Federation of Energy Traders (EFET), an organization representing over 120 European companies. EFET aims to enhance transparency and efficiency in Europe's energy market, promote competition, and ensure reliable energy supplies.

The EBRD is Ukraine's largest institutional investor and has invested over EUR 8 billion in the country since the war began. Its five priority investment areas in Ukraine are energy security, critical infrastructure, food security, trade, and the private sector.

The Ukraine Investment Framework is part of the EU's EUR 50 billion Ukraine Facility, designed to attract public and private investments for the country's recovery and reconstruction. It includes EUR 9.3 billion in financial instruments – EUR 7.8 billion in loan guarantees and EUR 1.5 billion in blended finance – with the goal of mobilizing EUR 40 billion for rebuilding, modernizing, and restoring Ukraine.