Naftogaz of Ukraine Group and the European Investment Bank (EIB) have signed a €300 million loan agreement to finance the purchase of imported natural gas. The signing took place in Kyiv.
Naftogaz CEO Serhiy Koretskyi noted that this loan concludes lengthy negotiations to secure financing for the heating season. According to him, the EIB usually finances investment projects, but given Russia’s destruction of Ukraine’s gas production facilities, the bank agreed to support gas procurement.
The mechanism stipulates that after selling the imported gas, the proceeds will be directed to the company’s investment projects. In this way, the EIB has provided Naftogaz with flexibility in using resources, which is critically important ahead of winter.
It is expected that the allocated €300 million will cover the purchase of more than 600 million cubic meters of gas. The loan term is up to 20 years, making it the longest in the company’s portfolio and allowing for long-term planning. Like the recent €500 million EBRD loan, the financing is guaranteed by the European Commission, ensuring no additional burden on the state budget.
