The European Bank for Reconstruction and Development (EBRD) has granted €270 million ($288mn) in financing to the Ukrainian state-owned company Naftogaz for the purchase of natural gas to strengthen the country’s strategic reserves. This operation aims to secure energy supplies over the next two heating seasons.
Bilateral support to address the emergency
This state-guaranteed loan is complemented by a €139 million ($148mn) grant from Norway through the EBRD’s Crisis Response Special Fund. This contribution brings Norway’s total support for Ukraine’s energy sector since the start of the Russian invasion in 2022 to €460 million ($490mn).
Naftogaz, the country’s main gas supplier, is designated as the supplier of last resort. The financing will enable swift and flexible gas purchases depending on the evolution of the conflict and demand. The company had already received two previous EBRD loans totalling €500 million ($533mn), backed by €275 million ($293mn) in guarantees from several countries, including the United States, Germany and France.
A key partner in Ukraine’s energy sector
With this new loan, the EBRD brings its total financing to Naftogaz since 2022 to €770 million ($820mn). The London-based institution is currently Ukraine’s main institutional lender. It has mobilised €6.5 billion ($6.92bn) to support the national economy in wartime conditions.
To maintain this level of support, the EBRD has secured shareholder agreement for a €4 billion ($4.26bn) capital increase, which should allow it to continue lending during the conflict and prepare for the reconstruction phase.
Ensuring energy continuity despite attacks
Since the start of the conflict, Ukraine’s energy infrastructure has been repeatedly targeted. Despite this, EBRD funding has enabled a minimum energy service to millions of households and businesses. The institution supports both state-owned enterprises such as Naftogaz and private sector operators.
“We must ensure Ukraine can continue to function, even in the midst of war,” the EBRD said in an official statement published on April 25 by EBRD News.
