Credit line to buy gas for Naftogaz remains effective – World Bank
National joint-stock company Naftogaz Ukrainy would be able to continue using the renewable credit line of $500 million secured by the World Bank for the purpose of buying natural gas required for passing the heating season, World Bank Country Director for Belarus, Moldova and Ukraine Satu Kahkonen has said.
Last year the World Bank provided the funds to buy gas in the form of guarantees, she said at a press conference in Kyiv on Tuesday. This is a renewable line and there is no need for the bank to close it, she said.
The World Bank believes that it is important to ensure gas supplies and diversify gas deliveries to Ukraine, Kahkonen said.
As reported, on December 30, 2016 Naftogaz Ukrainy signed with Citi and Deutsche Bank a loan agreement for a euro-denominated credit facility for gas purchase in the equivalent of $500 million secured by the World Bank.
The facility is secured by the World Bank's guarantee, which, in turn, is secured by the sovereign guarantee issued as part of the formation of the energy fund according to resolution No. 876 of the Cabinet of Ministers of Ukraine dated November 30, 2016.