EBRD Mulls US$300m Loan to Naftogaz for Gas Purchases after September 2015

The European Bank for Reconstruction and Development (EBRD) issued an official announcement on consideration of a gas purchase facility for Ukraine’s Naftogaz.  

‘The trade finance loan of up to US$300m is to be used to bridge the gap between purchase and sale of natural gas’ reads a note released by Naftogaz on Thursday. 

According to the Ukrainian company, the money can be disbursed to Naftogaz not earlier than September 2015. The investment is conditional to a series of approval stages.

‘According to the EBRD announcement, the project aims at supporting the policy of the Government of Ukraine to make Naftogaz operations financially sustainable by establishing commercial mechanisms for trade finance, achieving cost recovery pricing and eliminating the need for budget subsidies.’ 

EBRD’s participation is also meant to improve corporate governance of Naftogaz and Ukrtransgaz, aiming at increasing transparency and decreasing corruption.