The Overseas Private Investment Corporation (OPIC), an U.S. Government agency, will provide guarantees for a $38 million loan to Energy Resources of Ukraine (ERU) to purchase gas, OPIC has said on its website.

The total cost of the project amounts to $70 million.

OPIC said that ERU Trading will import LNG from the U.S. and purchase gas from local producers, store the gas in the Ukrainian gas storage facilities owned and managed by Ukrtransgaz, a state-owned entity, and sell the gas to ERU Trading’s industrial customers.

"The Project will strengthen Ukraine’s energy security through the purchase and storage of approximately 10% of Ukraine’s total annual gas needs," OPIC said, describing the project.

As reported, ERU Trading LLC belongs to Andriy Favorov (former commercial director of DTEK), Dale Perry and Yaroslav Mudriy.