Ukraine grants state guarantee to facilitate USD 300 mln loan to Naftogaz

Cabinet of Ministers resolved to provide up to USD 300 mln in state guarantees to Naftogaz of Ukraine to enable it receiving respective loan from EBRD, according to a government’s July 24 decree made public yesterday. Naftogaz, the state natural gas production and transit company, reported on July 16 that EBRD is considering provision of up to USD 300 mln in revolving loan “to bridge the gap between purchase and sale of natural gas”. The loan can be disbursed as soon as in September 2015, if all the approvals are passed on time.

With this loan, Naftogaz would be able to finance purchases of about 1.3 bcm of natural gas. According to the holding’s plan, it is going to increase its gas stockpiles by 6 bcm (to 19 bcm) by mid-October.