Chornomornaftogaz from Simferopol has selected Subsidiary Bank Sberbank of Russia and Export-Import Bank of Ukraine (Ukreximbank) to provide credit lines totaling UAH 150 million (about $18.8 million at the current exchange rate), according to information posted on the state procurement Web site.

Subsidiary Bank Sberbank of Russia will provide UAH 60 million ($7.5 million) for one year at 18% in hryvnias or 11% in the U.S. dollars, with a one-time commission fee equal to 0.25% of the total for the credit line.

Ukreximbank will provide UAH 90 million ($11.3 million) for one year at 19% in the local currency or 10.8% in the U.S. dollars, with a one-time commission fee of 0.3% of the credit line total.

The loan agreements are scheduled for signing before August 28.

The proceeds will be used to acquire equipment, materials and services, repay current debt, finance payrolls, make tax payments and for other liabilities.

Earlier in July, Chornomornaftogaz raised a renewable, multi-currency credit line also totaling UAH 150 million from Vseukrayinsky Bank Rozvytku (all-Ukrainian Development Bank, VBR Bank, Kyiv).

The company has also announced a tender for one other credit line totaling UAH 100 million ($12.5 million), which is to be raised before August 28.

Chornomornaftogaz carries out offshore development in the Ukrainian sections of the Black and Azov Seas. The company also produces hydrocarbons at fields in Crimea, and operates the Hlibovske underground gas storage facilities and trunk pipelines on the peninsula. It is wholly owned by Naftogaz Ukrainy.

Sberbank of Russia in Ukraine was the 10th biggest bank by assets among 175 active Ukrainian banks according to National Bank of Ukraine data as of April 1, 2013. Ukreximbank was the second biggest.