EBRD loans 200 million euros to fortify Ukraine's gas reserves as winter looms

The European Bank for Reconstruction and Development granted a loan of 200 million euros to the state oil and gas company Naftogaz of Ukraine to create strategic gas reserves for the cold season, reported the EBRD press service.

The loan agreement will enter into force after the state guarantee is issued, Naftogaz explains.

The loan is part of a total package of 500 million euros, part of which (300 million euros) was provided by the EBRD to Naftogaz last year.

The agreement on the allocation of a loan to support energy security was reached in June at the Ukraine Recovery Conference in London between EBRD President Odile Renaud-Basso and Prime Minister Denys Shmyhal.

Under this agreement, the Netherlands and Norway undertake loan risk coverage.

"The people of Ukraine is facing another cold winter under Russian attack. Norway will continue our support to Ukraine to maintain critically important energy security and meet the needs for heating for homes, businesses and public institutions," said the Minister of Foreign Affairs of Norway, Espen Barth Eide.

Norway's share in the loan from the EBRD is 54 million euros.

By the end of October 2023, the EBRD used all 3 billion euros that it allocated for Ukraine for 2022-23.

On November 15, the EBRD increased its capital reserves for the third time in its history for the sake of investments in Ukraine.