Latest News

Ukraine's Naftogaz receives a loan of 300 million euros for winter gas purchases

The Ukrainian state energy company Naftogaz announced on Wednesday that it had signed a loan agreement with the European Investment Bank worth 300 million euros ($352 millions) for the purchase of gas ahead of winter heating season.

Naftogaz is stepping up its efforts to secure funding for the purchase of enough gas to see Ukraine through the winter, after Russian strikes at production facilities reduced domestic output by 40%.

Naftogaz agreed to invest an amount equal to the EIB's loan in renewable energy and decarbonisation initiatives as part of this agreement. "300 million euros from the EIB are substantial and practical assistance that will help us ensure the country's resilience in energy ahead of winter," said Naftogaz Chief Executive Officer Sergii Koretskyi.

He stated that the company is pumping gas underground for winter storage as planned and that it has now reached its storage target of 95-98%.

According to the government, Ukraine will need at least 13,2 billion cubic meters of gas during 2025/26's heating season that begins in mid-October.

Naftogaz stated that the loan would allow for an approximate purchase of 0.6 billion cubic meters of gas.

Ukraine had to import gas in spring 2025 due to the attacks of hundreds of drones, missiles and other weapons that targeted the country's production facility.

Koretskyi claims that the gas purchased using the loan may be of any nationality except Russian.

He stated that Naftogaz increased its imports of U.S. LNG by a significant amount this year, which represented 8% of the total imports.

Koretskyi stated that the company has purchased 0.5 billion cubic meters of U.S. LNG. The majority of the LNG has been delivered already to the country. ($1 = 0.8516 euro) (Reporting and writing by Pavel Polityuk and Yuliia Diasa, Editing by Tomasz Janovowski and Elaine Hardcastle).

(source: Reuters)