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EBRD allocated €200 mln to improve energy security of Ukraine

EBRD allocated €200 mln to improve energy security of Ukraine EBRD provided Naftogaz with loan of €200 mln (Photo:

The European Bank for Reconstruction and Development (EBRD) will provide a loan of 200 million euros to assist NJSC Naftogaz of Ukraine in creating strategic gas reserves for the second winter heating season after the Russian invasion in February 2022, according to the bank's announcement.

Funds for Naftogaz will come from a 300 million euro loan granted last year as part of a 500 million euro donor support package, including a grant from Norway.

The signing took place in Kyiv, where the EBRD was represented by the Managing Director for Eastern Europe and the Caucasus, Matteo Patrone, and Naftogaz was represented by the head of NJSC, Oleksiy Chernyshov.

"We are proud of our collaboration with Naftogaz, which has also been improving its governance and, after difficulties in the past, has successfully completed the restructuring of its bonds – we stand ready to support them further," said Matteo Patrone.

The signing implements agreements reached in June at the Ukraine Renewal Conference in London between EBRD President Odile Rena-Basso and Ukrainian Prime Minister Denys Shmyhal. This is part of EBRD's efforts to enhance the country's energy security—one of the five investment priorities supporting EBRD's real economic assistance in Ukraine.

All EBRD investments in Ukraine involve risk-sharing with donors and partners, in this case, Norway and the Netherlands.

Harsh winter

"The people of Ukraine are facing another cold winter under Russian attack," said Norwegian Minister of Foreign Affairs Espen Barth Eide. "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."

He mentioned that Norway supports EBRD's efforts by allocating 54 million euros. "EBRD is a key partner for Norway's five-year comprehensive support program for Ukraine. So far, Norway has funded efforts by the EBRD within energy alone with EUR 300 million in 2022-23," he added.

In November, EBRD directors requested approval from the Board of Governors to increase capital by 4 billion euros, allowing EBRD to provide significant and sustainable investments in Ukraine and increase financing levels even more when the time comes for full reconstruction.