Ukraine's Naftogaz agrees €300 million EIB loan to buy gas

Ukraine's state energy company Naftogaz has signed a €300 million loan agreement with the European Investment Bank (EIB) to buy gas ahead of the heating season. Reuters reported this today, citing a statement from the Ukrainian company. Naftogaz is now seeking to secure financing to buy sufficient gas reserves for this winter, as Russian attacks have led to a 40 percent drop in gas production in Ukraine.

"The €300 million from the EIB represents significant and practical support that will help us ensure the country's energy resilience ahead of winter," Naftogaz said.

It added that it was filling underground gas storage facilities according to plan and was nearing its target storage level.

According to the Ukrainian government, the country needs at least 13.2 billion cubic meters of gas for the heating season, which will begin in mid-October. Naftogaz said the EIB loan would enable it to buy around 0.6 billion cubic meters of gas

The EIB is an institution of the European Union and specializes in providing long-term loans. Its shareholders are EU member states. Through its lending activities, the EIB seeks to help achieve the EU's policy objectives.