EBRD may lend EUR 60 mln to Naftogaz for purchase of gas

17:17, 25.06.2019 1 min read

The European Bank for Reconstruction and Development (EBRD) may lend EUR 60 million to NJSC Naftogaz Ukrainy to finance the purchase of natural gas for imports.

As the bank said on its website, its board of directors plans to consider this project on July 24.

The announcement says that such support by the EBRD in the form of a letter of credit will cover up to 20-30% of the payment risk of Naftogaz associated with financing the purchase of gas from reputable international traders, without resorting to sovereign guarantees.

As reported, in October 2015, the EBRD opened a credit line of $300 million to Naftogaz for the purchase of gas on the western border of Ukraine. During this period, Naftogaz could repay and use funds within the specified amount in order to finance gas purchases from the EU.

In January 2018, Naftogaz repaid the credit line, fully fulfilling its obligations.