With a new loan of €10 million to ERU Trading LLC, a privately owned gas trader, the European Bank for Reconstruction and Development (EBRD) is supporting competition and security of supply in the energy sector in Ukraine.
ERU Trading is the largest private importer of natural gas from Hungary, Poland and the Slovak Republic to Ukraine. The company secures low-cost gas from the European Union (EU) during the summer season and stores gas in Ukraine for domestic sale during winter.
The EBRD’s two-year revolving working capital facility will boost the company’s trade capacity.
Matteo Patrone, EBRD Managing Director, Eastern Europe and the Caucasus, said: “By supporting a privately owned gas trader, we are supporting further liberalisation of the energy market, greater competition and security of supply in Ukraine. Private gas trade also promotes greater utilisation and integration of the country’s transport and storage infrastructure with the EU gas market.”
Olga Mamedova, Head of the Legal Department of ERU Trading, added: “Today’s signing of the agreement with the EBRD means an acknowledgment that ERU Trading follows and complies with high standards and policies of doing business. This credit facility will help our company to contribute to ensure the reliability of supply to Ukrainian customers during the challenging winter season of 2021-22.”
As part of the agreement, ERU Trading has committed to continuing to provide career opportunities for women. The company plans to hold career guidance events and share best practices with other companies in the sector. It will also sign the Women’s Empowerment Principles developed by the United Nations to advance gender equality in the workplace, marketplace and community.
The EBRD is a leading institutional investor in Ukraine. In the past two years alone, the Bank has committed €2 billion to the country’s economy. Supporting sustainable development, liberalisation and sound competition in Ukraine’s gas market are among the EBRD’s key priorities.
