Naftogaz predicts prolongation of terms for 'Chinese loan'

National joint-stock company Naftogaz Ukrainy predicts the prolongation of terms for a loan issued by China, Naftogaz Head Andriy Kobolev told reporters in Kyiv on Thursday.

He added that negotiations how to arrange the further work are being held with China.

"We expect that it is likely that the term of the loan will be extended. The list of projects that could take part in it could be expanded," he said.

Kobolev said that Naftogaz handed a proposal on three projects approved by the Economic Development and Trade Ministry of Ukraine to China.

In December 2012, Naftogaz Ukrainy signed a $3.656 billion government-secured loan agreement with the bank to implement projects to replace gas by coal. The credit line was opened for 19 years, including a five-year grace period for paying the principal of the loan. The loan has not yet been used. Ukraine proposed to the bank that the list of projects is changed and China gave its consent.

Naftogaz Ukrainy in April 2016 reported that the holding proposes to finance modernization of heating systems in private houses of poor families and provide $1.7 billion for this purpose. $1.3 billion could be sent to build a thermal power plant in Kyiv and Lviv region to reduce gas imports and $400 million to buy equipment to increase gas production by Ukrgazvydobuvannia. The company submitted these four investment proposals to the Economic Development and Trade Ministry to assess their viability. The project to modernize heating systems in private houses of poor consumers was being drafted by the Regional Development, Construction, Housing and Utilities Economy Ministry.