Naftogaz and US Treasury Department discuss Ukraine’s oil and gas needs

Naftogaz CEO Oleksiy Chernyshov met the US Treasury Department’s Deputy Assistant Secretary for Europe and Eurasia, Brian McCauley, in Washington DC on Tuesday.

They discussed the possibility of financing the purchase by Ukraine of additional volumes of gas necessary to pass 2022-2023 heating season.

It is important to commit a share of the USD 500 mn allocated by the US through the EBRD* for the purchase of gas to ensure energy security of Ukraine, as well as electricity, water, and heat supply for Ukrainians during this heating season. This is in line with the main purpose of this financing, as defined by the US Department of the Treasury, to respond quickly to the crisis caused by Russian military aggression and to meet the energy needs of Ukrainians,” commented the Naftogaz CEO.

Chernyshov also thanked the US Administration’s request to Congress** to allocate an additional USD 1.1 bn to support Ukraine’s energy sector in 2023. “Another source of financing for gas purchases could be the new aid package for Ukraine in 2023 proposed by the US Administration to Congress with USD 1.1 bn offered for the energy sector,” noted Chernyshov.

We realise that Ukraine’s energy infrastructure needs are growing every time Russia launches fresh attacks. The US is in touch with the EBRD on the effective use of USD 500 mn allocated by the United States through the bank. Part of this amount is indeed provided for the purchase of energy resources,” noted McCauley.

For reference:

*On 27 July, 2022, the US Department of International Trade and Development allocated USD 500 mn through the EBRD to support businesses and state services affected by the Russian invasion of Ukraine. These funds should be allocated to Ukraine and other affected countries. According to the US Department of the Treasury, this contribution should attract at least USD 1 bn in additional investments from the EBRD.

**On 15 November, 2022, the US President’s Administration submitted a request to Congress to allocate financial aid to Ukraine due to the Russian invasion. The scope of the requested aid includes USD 1.1 bn to support Ukraine’s energy sector – in particular, the import of electricity, gas, and liquid fuels; reconstruction of facilities that provide electricity, gas, heating and water supply, etc.

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