Naftogaz signs €500M EBRD loan backed by EU guarantee for gas purchases

Naftogaz of Ukraine and the European Bank for Reconstruction and Development (EBRD) have signed a €500 million revolving credit agreement, Ukrainian Prime Minister Yulia Svyrydenko announced Wednesday, Report informs via Interfax-Ukraine.

"This is the bank's largest project in our country. But most importantly – for the first time, such a loan is backed by an EU guarantee, with no state guarantee from Ukraine required," she said.

According to the prime minister, the loan will help Ukraine prepare for the heating season and ensure homes have heat and electricity even during the harshest winter days.

Naftogaz will purchase gas under competitive conditions from more than 30 prequalified suppliers, based on contracts aligned with the standards of the European Federation of Energy Traders (EFET). EFET, which unites more than 120 European companies, works to improve transparency and efficiency in Europe's energy markets, promote competition, and ensure reliable energy supplies.