The Cabinet of Ministers of Ukraine has allowed Naftogaz Ukrainy to attract a credit line of UAH 3.5 billion from PJSC Ukrgasbank.

The government made the relevant decision at a meeting in Kyiv on August 9.

The term of the credit line is one year, the loan rate is 17.5%, collateral for the loan is natural gas.

"The loan agreements worth UAH 3.485 billion previously signed between Naftogaz and Ukrgasbank expire during the period from July to August 2017. The draft financial plan of Naftogaz for 2017 envisages refinancing credit debt to Ukrgasbank," the report says.

As reported, Naftogaz Ukrainy, 100% belonging to the Cabinet of Ministers of Ukraine, unites the largest oil and gas producing enterprises of the country. The holding is a monopolist in transit and storage of natural gas in underground gas storage facilities, as well as oil transportation via pipelines throughout the country.