Ukraine's state-owned natural gas firm, Naftogaz, and the European Bank for Reconstruction and Development (EBRD) agree on a €500 million loan to finance gas acquisitions
In a significant move for Ukraine's energy security and gas supply stability, the Naftogaz Group and the European Bank for Reconstruction and Development (EBRD) have signed a €500 million revolving credit agreement for gas purchases.
The loan, the largest ever provided by the EBRD in Ukraine, is a crucial step towards replenishing Ukraine's depleted gas reserves ahead of the critical winter season. This will ensure reliable heating and energy supply for the country's infrastructure and population.
The agreement was signed by Serhii Koretskyi, Chairman of the Naftogaz Group, on a road while returning from a business trip. The loan is provided under EU guarantees and does not require a state guarantee from Ukraine, reflecting high trust in Naftogaz’s reforms and management, and reducing the fiscal risk for the state.
Serhii Koretskyi thanked the Naftogaz team, the Government of Ukraine, and the EBRD for their efforts, support, and trust. He stated that the agreement is a clear signal that partners understand the scale of threats posed by Russia.
The gas will be sourced competitively from over 30 prequalified European suppliers using standard contracts from the European Federation of Energy Traders (EFET), promoting transparency, efficiency, and security in Ukraine’s gas market. The loan agreement with Ukrgasbank for UAH 4.7 billion (US$112.5 million) for gas purchases, previously reported, further bolsters Ukraine's gas procurement efforts.
The loan is highly significant for Ukraine's energy security and gas supply stability. It will help restore gas stocks that are at a low level (around 18.7% filled as of August 2025), which is crucial for heating and energy supply during winter.
This financing comes after significant damage to Naftogaz’s own gas production and processing facilities due to Russian attacks, necessitating increased imports to meet demand. The agreement was signed in preparation for the heating season together with the local authorities of Kryvyi Rih.
The broader impact of this agreement extends beyond immediate gas procurement. It supports Ukraine’s energy security, reform agenda, and progress towards energy independence. The EBRD’s loan is backed by a 90% EU guarantee, providing financial security and enabling further international investments to support Ukraine’s recovery and long-term energy independence goals.
In summary, this agreement plays a crucial role not only in immediate gas procurement but also in reinforcing Ukraine’s energy resilience amid geopolitical challenges and fostering continued reforms in its energy sector.
[1] Ukraine Business Journal [2] Ukrainian News Agency [3] Kyiv Post [4] Interfax-Ukraine [5] Reuters
- The loan, a significant move in Ukraine's financial sphere, not only ensures reliable heating and energy supply for the country's infrastructure and population but also supports the government's reform agenda and progress towards energy independence, as reported by Ukraine Business Journal.
- With the EBRD loan backing Ukraine's energy security and aiding in gas procurement, the government is also looking forward to increased investments in sports infrastructure, as reported by the Ukrainian News Agency.
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