: :inin Kyiv (EET)

Naftogaz buys 1.8 bcm of gas from European suppliers by means of EBRD loan

Ukraine`s oil and gas giant NJSC Naftogaz of Ukraine in August-October bought 1.8 billion cubic meters of gas from the European companies Axpo Trading AG, CEZ, Engie SA, Eni Trading & Shipping S.p.A., RWE Supply & Trading GmbH and Uniper Global Commodities SE at the expense of the credit line of the European Bank for Reconstruction and Development (EBRD), according to the press service of Naftogaz.

”The total cost of 30 signed contracts amounted to $334 million, of which $300 million were the means of the credit line, while $34 million were Naftogaz`s own money,” the press service said, adding that the average price of the contracts at the delivery point amounted $185 per 1,000 cubic meters.

The Ukrainian holding stressed that all suppliers had been selected within the framework of the EBRD pre-selection procedures, which ended in July 2016.

As UNIAN reported earlier, in September 2015, the Board of Directors of the European Bank for Reconstruction and Development approved a loan worth up to $300 million to NJSC Naftogaz of Ukraine for buying natural gas on the European market to fill storages for the winter heating period.

In May 2016, Naftogaz paid the last tranche of the loan together with interest on the renewable credit line of the European Bank for Reconstruction and Development in the amount of $300 million.

On October 18, 2016, the World Bank`s Board of Directors decided to grant Ukraine`s state-owned energy holding Naftogaz of Ukraine the $500 million loan guarantees that will allow attracting loan resources for the purchase of the necessary volumes of natural gas for the passage of the 2016-2017 heating season.


1 Comment

  1. That’s a better deal than having to pay the Russians up-front – especially when the guys selling the gas loan you the money to buy it.

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