OPIC approves $250 mln loan insurance for Naftogaz to buy gas
The Overseas Private Investment Corporation (OPIC) on June 14 approved $250 million in political risk insurance for national joint-stock company Naftogaz Ukrainy covering its revolving gas purchase facility.
OPIC said on its website that this will help Naftogaz build up gas reserves during the summer months to maintain a reliable supply and affordable prices.
Earlier OPIC said that it is planned that the relevant loans, the total amount of which can reach $270 million, will be attracted by Naftogaz from Goldman Sachs International and other international financial institutions.
OPIC said the implementation of the project will allow Naftogaz to purchase gas in the amount of up to 4% of the annual consumption of Ukraine at an attractive price for its subsequent sale in the autumn-winter period.
Naftogaz Ukrainy 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 storage facilities, as well as oil transportation via pipelines throughout the country.