EBRD could provide government-secured $300 mln loan to Naftogaz to buy gas

The European Bank for Reconstruction and Development (EBRD) is considering the provision of trade financing of up to $300 million to national joint-stock company Naftogaz Ukrainy to cover the financial gap which appeared in the period between purchases and sale of natural gas, the bank said in a report on Thursday.

A source close to the negotiations told Interfax-Ukraine that the loan could be provided by the beginning of autumn.

The bank said that the approval of the project is pending the final decision by the board.

The bank said that the provision of the financing to Naftogaz Ukrainy to cover the financial gap is a logical supplement to projects on modernization of the Ukrainian gas transport system and reformation of its gas sector.