Naftogaz has repaid the loan within the second round of the revolving facility provided by the European Bank for Reconstruction and Development (EBRD). In July-September 2016, Naftogaz used all funds available under the USD 300 million loan, with both the principal and interest paid in time.

The loan facility is effective until 2018. Naftogaz plans to use it to prepare for the next heating season.

“The EBRD loan facility is not only an affordable resource to buy gas for the heating season but also an important factor of Naftogaz reform. Within the framework of this facility, the EBRD is monitoring the implementation of new standards in reporting, transparency, environmental and social responsibility in Naftogaz,” – the company’s CEO Andriy Kobolyev said.

Within the second round of the EBRD loan, Ukraine acquired 1.8 bcm of gas. Naftogaz partially funded the agreements concluded following the results of the bidding under the EBRD loan.

The weighted average price of gas purchased from Europe using the loan was USD 185 thousand cubic meters at the delivery point. Axpo Trading AG, CEZ, a.s., Engie SA, Eni Trading & Shipping S.p.A., RWE Supply & Trading GmbH and Uniper Global Commodities SE won the bidding and supplied gas to Naftogaz under the EBRD loan.

Background information: Within the first round of the EBRD loan facility, Naftogaz bought 1.7 bcm of gas for the heating season 2015-2016.

The EBRD loan facility of USD 300 million was signed in October 2015 in order to purchase gas on Ukraine’s western border. The implementation of Naftogaz Corporate Governance Action Plan by the Ukrainian government was one of the conditions under the loan.

The EBRD provides a three-year revolving facility. During this period, Naftogaz can repay and reborrow within the agreed sum to fund its advance gas purchases.