Ukraine Borrows $550 Million From Gazprom for Gas Imports

Ukrainian Deputy Energy and Coal Industry Minister Volodymyr Makukha has confirmed that the country has borrowed $550 million (USD) from Gazprom's financial branch, Gazprombank to pay for gas supply.

The loan will enable Ukrainian state-run gas company Naftogaz Ukrainy to pay for gas imports into the country. 

Leaked letters from Naftogaz to Gazprom, which first appeared on Ukrainian site Ekonomichna Pravda, detailed the technicalities of the loan yesterday. Gazprombank will grant financing to Naftogaz at a cost of 8.5 percent over a one-year period to pay for the gas imports.

The letters also showed that Naftogaz was forced to apply for the credit due to a lack of working capital.

"Yes, we took a $550 million credit from Gazprombank," the Kyiv Post reports Minister Makukha as saying. Minister Makukha also confirmed the leaked rate of loan repayment as accurate.