Naftogaz will be able to use the loan in full when the Cabinet of Ministers approves the company’s financial plan for 2017 and demonstrates substantial progress in the corporate governance reform
Last week, the EBRD Operations Committee approved USD 66 million tranche for Naftogaz within USD 300 million loan facility provided by the EBRD for Ukraine’s gas purchases from European suppliers. The EBRD is observing delays in the implementation of the Corporate Governance Action Plan by the Ukrainian government and is ready to fully resume the loan if the Cabinet of Ministers of Ukraine fulfills several commitments to the bank by the end of July.
In particular, the EBRD Operations Committee noted the Cabinet’s intention to approve Naftogaz financial plan and performance indicators for Naftogaz Supervisory Board to the bank's satisfaction by the end of this month.
“This funding is crucial to Ukraine’s preparation for the upcoming heating season and accumulating sufficient volumes of funds. Nevertheless, we understand the EBRD’s decision and hope that the Ukrainian side will quickly catch up on the approved Corporate Governance Action Plan,” – Naftogaz CEO Andriy Kobolyev said.
Naftogaz financial plan prepared according to international standards was agreed by the company’s supervisory board and submitted to the Cabinet of Ministers for approval in April.
Background information: The EBRD facility of USD 300 million was launched in October 2015 for purchasing gas on Ukraine’s western border. The implementation of Naftogaz Corporate Governance Action Plan by the Ukrainian government was one of the conditions for the EBRD loan.
NJSC Naftogaz of Ukraine