Naftogaz has fully repaid USD 500 million received under loan agreements guaranteed by the World Bank and the Ukrainian government.
“Naftogaz has once again confirmed its reputation as a reliable partner conscientiously fulfilling its obligations," commented Naftogaz CEO Andriy Kobolyev. "Since 2014, Naftogaz has duly repaid nearly USD 3.2 billion in loans guaranteed by the government. Naftogaz’s credit portfolio has undergone a more than sixfold decrease since 2014 to reach a record low. It is important for us to continue cooperation with creditors under the guarantee mechanism that allows optimal borrowing conditions.”
In 2019, Naftogaz plans to inject 3 bcm more gas than last year into its UGS facilities. This is due to the risk of gas blackmail by Russia following the expiration of the current gas transit contract between the two countries on 1 January 2020. According to Naftogaz experts, Ukraine needs to accumulate about 20 bcm of gas in its UGS facilities before the start of the heating season to avoid this risk.
Naftogaz signed loan agreements totaling USD 500 million and guaranteed by the World Bank and the Ukrainian government on 30 December 2016. The company used the borrowed funds to buy nearly 5 bcm of gas from the European market over a two-year period, which was crucial to secure uninterrupted gas supply to Ukrainian consumers.
NJSC Naftogaz of Ukraine