The Board of Directors of the European Bank for reconstruction and development (EBRD) approved a project involving the provision of NJSC «Naftogaz of Ukraine» credit under the state guarantees of up to $300 million for the purchase of natural gas on the European market to fill storage for heating season.
As reported by the senior Advisor for external relations EBRD Anton Usov, the decision of the Board of Directors of the Bank adopted at the meeting on Wednesday, September 30, reports «Interfax-Ukraine».
Earlier the Bank mentioned that this credit will contribute to strengthening energy security of Ukraine through diversification of suppliers and routes of supply of natural gas is closely related to the previous collaborative project with the NJSC «Naftogaz of Ukraine» signed in 2014 and providing for the modernization and repair of the Western part of the main gas pipeline «Urengoy-Pomary-Uzhgorod» is a key element of the gas transportation system of Ukraine.
Prime Minister of Ukraine Arseniy Yatsenyuk at a government meeting on Wednesday, September 30, reported that in case of approval of the EBRD loan to «Naftogaz» on the procedures the Bank will hold the tender to $300 million to purchase gas on the Western border.
Yatsenyuk stressed that already has an account with $500 million, and the decision of the EBRD will allow you to unlock and get another $500 million from the world Bank under the state guarantees for the purchase of gas.
«Thus, the total package of funding needed to make it through the winter, is about $1.3 billion, of which $500 million already in the account,» he said.
The EBRD in a statement on Wednesday the release notes that both projects with the NJSC «Naftogaz of Ukraine» needs to promote reform of the Ukrainian gas market, as well as further implementation in the field of market principles and liberalization in line with best practice. They also help strengthen corporate governance in the «Naftogaz» and make the purchase of natural gas more transparent and efficient.
«The funds of this loan will be used in strict accordance with the principles and rules of procurement of EBRD, European best practices and the documentation of the European Federation of energotrader», — stated in the message.
Managing Director of EBRD in energy and natural resources Riccardo Puliti, whose words are included in the release, added that the loan would also require support in such key areas as creating a truly independent regulator, the improvement of tariff methodology, and the implementation of the code of gas networks.
The Bank clarifies that technical assistance for the implementation of the action plan in the sphere of corporate management of «Naftogaz of Ukraine» paid the multi donor account, the EBRD-Ukraine, which was established by the Bank in 2014 and is funded by Finland, France, Germany, Netherlands, Sweden, Switzerland, UK, USA, Denmark, Sweden and Norway.
NJSC «Naftogaz of Ukraine» is a state holding company comprising a vertically integrated group of companies involved in mining, transporting, storing and processing of oil and gas, and also fuel supply.
The consolidated losses of «Naftogaz» in 2014 increased compared with the previous year, 4.9 – fold to 88,43 bn, with revenue growth of 4.1%, to 78,44 bn.
At the same time, the unconsolidated loss of the NAC in the first half of 2015 decreased compared with the same period of 2014 at 7.3% to 4.47 billion USD, and net income increased by 49.1% to 53,55 billion USD.
The EBRD is the largest international financial investor in Ukraine. As of 1 September 2015, the Bank assumed obligations concerning the provision of EUR11 billion in the framework of the 346 projects in the country.
The EBRD has provided Ukraine with $ 300 million to purchase gas from the EU 30.09.2015