On 16 May 2016, Naftogaz of Ukraine fully repaid the outstanding balance under the revolving credit facility from the European Bank for Reconstruction and Development (EBRD), which was signed last year.

Naftogaz has fully drawn down the $300 million facility in December 2015 and January 2016. The interest and the loan were fully paid on time. The revolving credit line is valid until 2018, and Naftogaz expects to use the funds to accumulate gas for the next two heating seasons.

“The cooperation with the EBRD under this framework is vital for us for many reasons. The facility has not only enabled us to finance the purchase of gas to ensure security of supply during the heating season. It gave the much-needed impetus for the ongoing corporate governance reform of state-owned enterprises in Ukraine. The EBRD also monitors the introduction of new standards for accountability and transparency, as well as issues related to environmental and social responsibility at Naftogaz,”  said Andriy Kobolyev, CEO of Naftogaz of Ukraine.


Within the framework of the EBRD loan, Naftogaz has purchased approximately 1.7 bcm of gas. A portion of the cost was financed by Naftogaz from its own resources. The price of this gas at the delivery point averaged at USD193/tcm.

The contracts were awarded to Noble Clean Fuels Limited, Engie SA, Axpo Trading AG, E.ON Global Commodities SE and Eni trading&shipping S.p.A, based on the EBRD-controlled pre-qualification and tendering procedure.

For reference: EBRD’s revolving credit facility of $300 million was signed in October 2015 and intended for gas purchase at the Western border of Ukraine. One of the conditions of the EBRD loan was the implementation of the Action Plan on corporate governance reform in Naftogaz by the government of Ukraine. EBRD’s facility is valid for a period of 3 years. During this period Naftogaz may partially return the loan and then again re-draw the funds to finance the purchase of gas.