EBRD boosts Naftogaz with €200 million loan for gas reserves

KYIV – The European Bank for Reconstruction and Development (EBRD) has signed a deal to provide Ukrainian state energy company Naftogaz with a €200 million loan aimed at preparing the country’s gas reserves for the winter season. This agreement, taking place in Kyiv today, follows an earlier €300 million loan and includes financial contributions from Norway as part of a comprehensive aid package.

The latest funding from EBRD, led by President Odile Renaud-Basso and Managing Director Matteo Patrone, alongside Naftogaz CEO Oleksiy Chernyshov, is part of a sustained effort to bolster Ukraine’s energy provisions amidst ongoing conflict-related challenges. Matteo Patrone praised Naftogaz for its governance improvements and successful bond restructuring efforts.

This financial support stems from an accord reached at the Ukraine Recovery Conference held in London back in June 2023. The conference was a pivotal moment where Prime Minister Denys Shmygal and EBRD officials agreed on measures to enhance Ukraine’s energy security.

Norwegian Foreign Affairs Minister Espen Barth Eide announced in November 2023 that Norway would donate €54 million toward Ukraine’s energy stability through the EBRD. This contribution is part of Norway’s larger commitment of €300 million for the year, which underscores the country’s support for Ukraine’s energy security and infrastructure development.

The EBRD has been a significant investor in Ukraine, having injected nearly €3 billion into various projects since the onset of the conflict. With an eye on future reconstruction efforts post-conflict, the bank is also considering a proposal for a substantial capital increase that could provide an additional €4 billion in support.

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