IMF rejects possibility of budget financing of gas imports
Naftogaz Group will rely on support from international financial institutions and donors, its own resources and loans from Ukrainian banks to import gas for the next heating season, while no budget expenditures are foreseen for this, according to the updated after the eighth review of the Extended Fund Facility (EFF) for Ukraine, which the International Monetary Fund (IMF) published on its website on Tuesday.
Naftogaz is implementing a comprehensive plan to import gas in 2025 to replace domestic production lost due to attacks on its infrastructure. To finance these purchases, the company is expected to rely mainly on support from international financial institutions and donors, its own cash buffers and domestic bank financing.
"No additional budget expenditures for gas imports are expected," the document states.
The IMF indicates that in early 2025, up to 50% of Naftogaz's gas infrastructure was attacked and temporarily damaged, which caused a sharp drop in gas production and a decrease in its storage volumes to a historically low level.
The document notes that according to the Fourth Rapid Damage and Needs Assessment (RDNA4) conducted by the World Bank, total losses in the energy and mining sectors since the invasion amount to $20.5 billion, and recovery and reconstruction needs are estimated at $68 billion (13% of total needs).
As reported, at the end of March 2025, member of the board and commercial director of Naftogaz Group Dmytro Abramovich noted that by the start of the next heating season by November 1 of this year, Ukraine needs to import 4.5-4.6 billion cubic meters of natural gas.