Naftogaz holding talks with EBRD on increase of bank's loan to buy gas
National joint-stock company Naftogaz Ukrainy is discussing with the European Bank for Reconstruction and Development (EBRD) the possibility of expanding a credit line with the limit of $300 million raised at the end of 2015 from the bank to buy natural gas in Europe, Naftogaz Ukrainy Commercial Director Yuriy Vitrenko has said.
He said at a press conference in Kyiv on Thursday that the current credit line could be expanded or a new line could be opened.
Naftogaz Board Chairman Andriy Kobolev added that Naftogaz has currency on its accounts. The holding bought it to buy gas and pump it to underground storage facilities.
As reported, Naftogaz Ukrainy and EBRD signed a $300 million revolving loan agreement in October 2015. The funds are provided to buy gas in the EU by Naftogaz.
In 2015, the holding bought around 1.7 billion cubic meters of gas at average price of $193 per 1,000 cubic meters (at the delivery point). Noble Clean Fuels Limited, Engie SA, Axpo Trading AG, E.ON Global Commodities SE and Eni trading&shipping S.p.A. supplied gas.
Naftogaz Ukrainy said on May 20, 2016 that the holding fully paid the principal of the $300 million loan and the interest to the EBRD and in a week it announced a new tender to select gas suppliers to buy gas using the bank's funds.
