Ukraine will receive a loan warrant for 500 million US dollars from the World Bank to purchase gas

10/18/16

Today, the management board of the World Bank has decided to provide the National JSC “Naftogaz” a loan warrant amounting 500 million US dollars which shall allow to purchase enough gas for the winter season.

What does it give?

Funds which will be received under this loan warranty will be used to ensure heating services to the citizens of Ukraine in the winter season.

Why is it important?

Thanks to the active cooperation of Naftogaz and the Ministry of Finance in negotiating this loan warrant, funds will be provided to Naftogaz at favorable terms. The loan warrant of the World Bank lowers risks for creditors and makes a lower interest rate possible.

The loan warrant agreement with the World Bank was reached in the course of the consistent reform in the energy sector of Ukraine which resulted in reducing the budget deficit of Naftogaz from more than 10 billion US dollars to zero and driving Naftogaz into the black-ink area.

Last year Naftogaz received a loan from the EBRD amounting 300 million Euro for the purchase of gas on the European market. That loan not only ensured stable heating supply to households, but also speeded up the diversification of the energy suppliers of Ukraine and strengthened its energy independence and security.

What comes next?

Naftogaz is expected to sign the loan agreement as soon as all necessary procedures are finalized.

You can mark the parts of text you like, which will be available at the link in the address bar of your browser

You can mark the parts of text you like, which will be available at the link in the address bar of your browser