In August-October 2016, Naftogaz procured 1.8 bcm of natural gas from Axpo Trading AG, CEZ, a.s., Engie SA, Eni Trading & Shipping S.p.A., RWE Supply & Trading GmbH and Uniper Global Commodities SE within the scope of the second round of utilization of Gas Purchase Renewable Credit Facility funds provided by the European Bank for Reconstruction and Development (EBRD).

Total value of 30 awarded contracts amounted to USD 334 mln, of which USD 300 mln were financed through the credit facility and USD 34 mln – from Naftogaz’s own funds.

All 6 suppliers were identified as eligible by the EBRD prequalification procedure concluded in July 2016.

Weighted average price of the contracts amounted to USD 185 per tcm at delivery point.

Reference: from December 2015 to March 2016, Naftogaz has procured 1.7 bcm of natural gas from 5 suppliers by utilizing the EBRD Credit Facility.

The EBRD Renewable Credit Facility of USD 300 million was opened in October 2015 and intended for natural 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.

The EBRD Facility is a renewable loan for a period of 3 years. During this period, Naftogaz may partially repay the loan and then again re-borrow the funds to finance gas purchases from the EU.