Ukraine allocates $200 million for gas purchases after Russian strikes hit gas infrastructure

The Cabinet of Ministers on Thursday allocated ₴8.4 billion (approximately $200 million) from the state budget’s reserve fund for gas purchases, Prime Minister Yulia Svyrydenko announced following a government meeting.

"This decision is part of our winterization plan. Ukraine needs additional gas supplies to ensure a stable heating season. Due to massive Russian attacks on our gas infrastructure, we have temporarily lost part of our domestic production," Svyrydenko said in a statement.

She added that, together with Naftogaz, the government is doing everything necessary to secure a stable heating season across the country.

Ukraine reached the government’s target of 13.2 billion cubic meters (bcm) of natural gas reserves for the heating season two weeks ahead of schedule. However, extensive Russian missile and drone strikes on gas production facilities have made this volume insufficient.

According to Bloomberg, Ukraine may require an additional 4.4 bcm of gas by the end of March—almost equivalent to the volume the country purchased during the off-season.

• Following Russia’s shelling of energy infrastructure, the EBRD is considering providing Ukraine with an additional another 500 million euros for gas purchases.
• Meanwhile, Norway has announced plans to allocate about $150 million to help Ukraine purchase gas for the winter period.