The Naftogaz Group and the Ministry of Finance of Ukraine have signed a loan agreement with the European Bank for Reconstruction and Development (EBRD), the press service reports.
JSC Ukrgazvydobuvannya, which is part of the Group, will receive €51.9 million from the EBRD for measures to reduce Ukraine's dependence on imported energy resources.
Naftogaz, despite the economic crisis, is committed to attracting international investment to retain Ukrainian gas production and improve energy efficiency.
“We are actively changing the internal processes of Naftogaz to soften the blow from the crisis in the industry. International investment is critical to achieving energy independence, especially in the current unfavorable price environment. The signing of the agreement with the EBRD is another step towards strengthening the country and a testament to the success of the corporate reform of Naftogaz. We are open and efficient, which is why international partners trust us. Such cooperation is a powerful signal for other foreign investors that even in difficult times it is possible and necessary to invest in Ukraine,” said Andriy Kobolyev, Chairman of the Board of NJSC Naftogaz of Ukraine.
Naftogaz jointly with the Ministry of Finance of Ukraine agreed on the terms of the loan agreement.
Ukrgazvydobuvannya will use the raised funds to upgrade its fleet of workover rigs for work at depths over 5 km and to introduce energy efficient technologies to reduce energy consumption at the Lokachinsky field (Volyn region).
The loan is provided in two tranches - 36.4 million euros and 15.45 million euros each. The first tranche has a maturity of 9 years, the other 15 years. The effective interest rate is approximately 2.5% per annum (given the current situation on the international interbank market).
The loan will be guaranteed by the state of Ukraine. The cost of the state guarantee is 1% of the amount of the selected and outstanding loan.
Procurement for both projects will be carried out on the EBRD's tender platform, in accordance with the Law of Ukraine on Public Procurement and the Bank's procurement principles and rules for projects in the public sector.
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