International lenders to give Ukraine up to USD 1.7 bln for gas reform

In a joint statement on Sunday, the European Commission and the International Monetary Fund said that international lenders were prepared to consider providing Ukraine up to USD 1.7 bln in loans for the gas sector. The European Bank for Reconstruction and Development is prepared to give Naftogaz of Ukraine up to USD 300 mln to restock underground gas storage facilities for winter – and another USD 450 mln to upgrade the gas transit system next year. The World Bank is ready to provide up to USD 500 mln to facilitate fiscal and structural gas sector reforms, social welfare payments and other government spending. The European Investment Bank is pledging up to USD 450 mln to help upgrade the gas transit system. The European Commission said that Ukraine promised to make changes in the way in runs the gas business to provide stability in gas relations. Andriy Gerus: This news is positive for Naftogaz, though we do not know the terms of the possible loans yet, which might be the subject of long and difficult negotiations.