EBRD to fund €200M to expand Ukraine’s gas reserves

The European Bank for Reconstruction and Development (EBRD) will lend €200 million to Ukraine’s state energy company Naftogaz (NAK) to build up strategic gas reserves, the bank announced on Thursday.

The final agreement was signed in Kyiv, having initially been approved in June during the Ukraine Recovery Conference in London to support Ukraine in the second winter heating season after the onset of the Russia-Ukraine war.

An EBRD statement revealed that the signing was a part of the bank’s efforts to boost Ukraine’s energy security.

Since the start of the Russia-Ukraine conflict, the EBRD has significantly increased its support for Ukraine, providing nearly €3 billion for several sectors in the country, including energy security, vital infrastructure, food security, trade and support for the private sector.

‘We are proud of our collaboration with Naftogaz, which has also been improving its governance and, after difficulties in the past, has successfully completed the restructuring of its bonds – we stand ready to support them further,’ said Matteo Patrone, EBRD managing director of Eastern Europe and the Caucasus.

The latest finance for Naftogaz follows a loan of €300 million given last year as part of a package of €500 million of donor support including the grant from Norway.

All EBRD investments in Ukraine involve risk-sharing with donors and partners, in this case with Norway and the Netherlands.

The Norwegian Minister of Foreign Affairs, Espen Barth Eide, confirmed that the country’s contribution to Ukraine totals €54 million to maintain critically important energy security and meet the needs for heating for homes, businesses and public institutions.

Norway has so far funded €300 million in support of the EBRD for overall energy sector since last year.

• EBRD
• Espen Barth Eide
• Norwegian Minister