14:48 25.12.2015

IFC to provide $200 mln to buy gas from France's ENGIE by Naftogaz

2 min read
IFC to provide $200 mln to buy gas from France's ENGIE by Naftogaz

The International Finance Corporation (IFC) from the World Bank group would provide a trade finance facility of up to $200 million for the period of up to one year to buy natural gas from France's ENGIE (earlier GDF SUEZ) by national joint-stock company Naftogaz Ukrainy under a framework contract signed by the companies.

IFC said on its website that the board of directors approved the decision on December 17, and the required documents are pending signing.

According to the Interfax-Ukraine's source, ENGIE will receive the loan.

ENGIE is a global energy player and an expert operator in the three key sectors of electricity, natural gas and energy services. ENGIE is headquartered in Paris, France and employs about more than 150,000 people globally. The French Government has 32.3% stake in the group as a shareholder and remaining stake is held by public (including institutional investors and individual investors).

IFC said that since 2014 ENGIE has been one of the major suppliers of natural gas to Ukraine.

Minister of Energy and Coal Industry Volodymyr Demchyshyn said in July 2015 that IFC is mulling the provision of a loan to traders to buy gas, store it in underground storage facilities, and then sell it on the Ukrainian market.

"For example, IFC is discussing the possibility of providing a loan to a trader which would take [gas] on its balance sheet, will store it and sell, for example, to Naftogaz Ukrainy. Various schemes are being discussed," he said.

Deputy Board Chairman of Naftogaz Ukrainy Serhiy Konovets said that companies that now supply gas to Naftogaz Ukrainy from Europe, particularly, Gaz de France, RWE, could receive the loans.

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