China Development Bank has notified national joint-stock company Naftogaz Ukrainy on the termination of the general loan agreement for the amount of $3.656 billion signed in 2012, the press service of the Ukrainian company has reported.

Naftogaz recalled that under the terms of the agreement guaranteed by the state, projects for borrowed funds were to be transferred to the bank before June 25, 2017. Because of the delay in obtaining approvals from Ukrainian public agencies, in June 2017, Naftogaz arranged to postpone the transfer until Aug. 1, 2017 with China. The last time Naftogaz handed over the documents for approval by the requisite ministries in February 2017 and since then sent more than 40 letters to these ministries and the Cabinet of Ministers of Ukraine with a request to speed up the consideration of the submitted materials.

"The necessary approvals were provided by Ukraine in October 2017, and the materials were received by the bank after the approved deadline. As a result, the bank informed Naftogaz about the impossibility of processing the received documents and, accordingly, about the termination of the loan agreement signed in 2012," the company said.

At the same time, announcing the termination of this loan deal, the bank notified of its readiness to continue cooperation with Naftogaz on new projects.

"Now representatives of the company are negotiating with the bank on the format of work, which would require fewer approvals by public agencies," Naftogaz said.

The press service said that the Naftogaz group began active cooperation with leading Chinese companies. Thus, at present, PJSC Ukrgazvydobuvannia has contractual relations with several Chinese companies for more than $30 million. The contracts were concluded after tenders in the ProZorro e-procurement system. The total value of contracts with Chinese companies that are at the stage of confinement is about $300 million.

According to the company, the Chancellery for Trade and Economic Affairs of the Chinese Embassy in Ukraine confirmed the readiness of China for further cooperation with the Naftogaz: "We are pleased with the results of the work of Chinese companies with the enterprises of the Naftogaz Group, in particular, Ukrgazvydobuvannia. We hope for continuation of mutually beneficial cooperation with Naftogaz."