Naftogaz Group has signed a landmark €300 million loan agreement with the European Investment Bank (EIB). The financing will be used to purchase gas to build long-term gas reserves and to ensure stable winter supplies for Ukrainians, following damage to the country’s infrastructure caused by Russia’s ongoing attacks.
EIB Group President Nadia Calviño said: 'This new financing from the EIB will help reinforce Ukraine’s energy security during the winter, providing vital support to communities and businesses.'
'This loan combines rapid crisis response with a long-term view. It supports the country’s shift to cleaner, more sustainable energy – a cornerstone of the country’s recovery and EU integration,' added EIB Vice-President Teresa Czerwinska, who oversees the bank’s operations in Ukraine.
The financing is part of the EIB’s Ukraine Energy Rescue Plan, with the European Commission backing the loan through the EU’s Ukraine Investment Framework (UIF) guarantee.
€300 million from the EIB is substantial and practical support that will help us guarantee the country’s energy resilience ahead of the winter. I sincerely thank the President of Ukraine, the Ukrainian Government, and the Prime Minister for their support, as well as our European partners for their trust and solidarity,' said Sergii Koretskyi, Chief Executive Officer of Naftogaz.
Prime Minister Yuliia Svyrydenko welcomed the agreement and highlighted its importance for Ukraine’s energy resilience: 'The €300 million agreement between the EIB and Naftogaz demonstrates the tangible results of Ukraine’s partnership with the European Union’s bank. Thanks to this financing, Ukraine will be able to secure gas reserves and ensure a stable supply of heat this winter for hundreds of thousands of households, even amid ongoing enemy attacks. This agreement also continues Naftogaz’s transition towards renewable energy and decarbonisation. It is an important step towards building a modern energy system and advancing Ukraine’s integration into the European Union,' said Ukrainian Prime Minister Yuliia Svyrydenko.
The agreement was signed in the presence of Minister of Economy, Environment and Agriculture Oleksii Sobolev and European Commissioner for Enlargement Marta Kos during her visit to Kyiv.
'This agreement between the EIB and Naftogaz is an important contribution to Ukraine’s energy and economic stability. Reliable energy supply is essential for businesses to operate, for jobs to be preserved, and for investment to continue flowing into our economy. At the same time, this partnership supports Ukraine’s long-term goal of building a resilient, sustainable and European-integrated energy sector,' said Oleksii Sobolev, Minister of Economy, Environment and Agriculture of Ukraine.
As part of the agreement, Naftogaz pledges to reinvest an amount equivalent to the EIB loan into renewable energy and decarbonisation projects.
European Commissioner for Enlargement Marta Kos said: 'This loan helps prepare Ukraine for another difficult winter. It will help households and businesses keep the lights and the heating on. It will advance Ukraine’s integration into the EU energy market.'
European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis commented: 'Russia has relentlessly targeted Ukraine’s energy infrastructure in its brutal attacks. As Ukrainians face a fourth winter since Russia launched its full-scale invasion, this timely €300 million loan agreement, supported by the EU budget, will help reinforce Ukraine’s energy resilience, ensuring reliable energy supplies for households and businesses. The EU remains Ukraine’s largest donor and supporter. Today’s agreement is yet another demonstration of the EU’s unwavering commitment to Ukraine and its people.'
Source: Naftogaz
