Naftogaz secures $314mn EBRD loan for gas purchases
The European Bank for Reconstruction and Development (EBRD) has provided a €300mn ($314mn) loan to Ukraine's Naftogaz to cover the purchase of natural gas imports, the two sides announced on June 14.
Following a loss of domestic gas supply as a result of Russia's invasion, Ukraine is scrambling to build up its gas reserves ahead of next winter. Naftogaz will spend an initial €50mn on emergency gas purchases, and aims to raise a total of €1bn to buy up to 1bn m3 of gas this year.
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EBRD shareholders will guarantee two thirds of the loan, which is also backed by Ukraine's sovereign guarantee.
“The urgency to act is clear. Gas is needed: for the next heating season, for electricity production, and more broadly for supporting the economy," EBRS president Odile Renaud-Basso said in a statement. "The replenishing of gas stocks must start now to avoid serious consequences in the autumn. This operation is very simply about providing heating to the people and economy of Ukraine."