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Naftogaz Secures Record $585M EBRD Loan With First-Ever EU Guarantee to Boost Winter Energy Security
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![Photo of Cyril Barabaltchouk]( "Photo of Cyril Barabaltchouk")
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Ukrainian state energy company Naftogaz has secured a historic $585 million loan agreement with the European Bank for Reconstruction and Development (EBRD) to purchase gas, marking the largest project the bank has ever signed in the country, according to posts by Ukrainian Prime Minister Yulia Svyrydenko on Telegram and the Chairman of Naftogaz, Serhiy Korytskyi on Facebook on August 13.
This deal comes as a significant step toward ensuring Ukraine's energy security, particularly with the winter heating season fast approaching. For the first time, the loan is backed by a guarantee from the European Union rather than Ukraine's state guarantee.
This arrangement will help Ukraine better prepare for the heating season and ensure that homes across the country remain warm and powered through even the harshest winter days.
The Prime Minister of Ukraine expressed her gratitude to both the EBRD and the EU for their ongoing support, acknowledging the efforts of the Government of Ukraine and Naftogaz in securing the deal.
“This is the first time such a loan has been provided under an EU guarantee, without a state guarantee from Ukraine. This will allow Ukraine to better prepare for the heating season and provide Ukrainian homes with heat and light even on the coldest days of winter,” Svyrydenko wrote.
“Thank you to the EBRD and the EU for their support, and to the Government and Naftogaz teams for their professional work,” she concluded.
The Chairman of Naftogaz, Serhiy Korytskyi, emphasized that the $585 million renewable credit agreement is the largest deal the EBRD has ever signed in Ukraine and one of its largest globally. He highlighted that the loan, backed by EU guarantees, is a turning point in Ukraine's ongoing quest for energy independence.
Korytskyi also thanked the key stakeholders at the EBRD, the European Commission, and Ukrainian ministries for their unwavering support, particularly the Ukrainian Cabinet of Ministers for strengthening Naftogaz’s capabilities.
“Energy security today and energy independence in the future are our strategic priorities. Through joint efforts, we have achieved this result! Thank you for your teamwork, trust, and support,” he wrote.
Earlier, it was reported that the Ukrainian Naftogaz Group was to enforce a $5 billion arbitration award against Russia over the illegal seizure of the company’s assets in Crimea.
According to Naftogaz’s press service, the ruling allows the seizure of more than 20 Russian-owned real estate properties in Austria, which are set to be auctioned off. The combined value of the assets exceeds $130 million.
