A $500 million loan from Citibank and Deutsche Bank guaranteed by the World Bank will be sent to cover cash gaps of national joint-stock company Naftogaz Ukrainy, Naftogaz Board Chairman Andriy Kobolev has said.

"It [the loan] will be first used to cover cash gaps of Naftogaz caused, for example, by the decisions that we will receive the money for heat in installments from Ukrainian consumers," he said on Channel 5 TV late on Thursday.

He said that the provision of the loan would help the holding to continue importing large amounts of natural gas (now 47-50 million cubic meters a day). This would help the country to safely pass the 2016/17 heating season.

Kobolev said that the cost of the funds raised from Citibank and Deutsche Bank that won the relevant tender is not expensive. Interest is up to 3% per annum.

"The money is provided for one year. This is a revolving credit line. Then it could be re-launched when we repay the loan and the cost of the resources is less than 3% per annum,"

Naftogaz Commercial Director Yuriy Vitrenko earlier said that Naftogaz hopes to receive a World Bank guaranteed $500 million loan by late November.