Naftogaz attracts EUR 300 mln in EIB financing for gas purchase
Naftogaz Group and the European Investment Bank (EIB) have signed a EUR 300 million loan agreement for the purchase of imported natural gas. The agreement was signed in Kyiv on Wednesday, an Energy Reform correspondent reports from the scene.
"This loan will allow us to finalize the long and complex process of securing financing for the purchase of imported gas to get through the autumn-winter period. This is the result of our collaboration with the government and international financial organizations," said Serhiy Koretsky, Board Chairman of Naftogaz Ukrainy, after signing the agreement.
He emphasized that the EIB institutionally finances investment projects, but agreed to support Naftogaz in purchasing imported gas with the subsequent relocation of these funds to investment projects.
"The EIB has come to our aid because it recognizes that Russia is destroying our gas production capacity and that it needs to be replaced. Once the gas is sold and the company receives the funds, we will allocate them to investment projects. In other words, the EIB has given us the flexibility to use the funds before the start of the autumn-winter period, for which we are very grateful," explained the head of Naftogaz.
According to Koretsky, the EIB funds should be enough to purchase more than 600 million cubic meters of gas.
"The loan itself is designed for up to 20 years and is the longest in the company's loan portfolio, which allows us to plan activities in the long term," explained the head of the company.
He emphasized that, like the recent EBRD loan of EUR 500 million, the EIB loan is provided under the guarantees of the European Commission, which does not require an additional burden on the state budget.