Agreements with EBRD to obtain $300 mln for gas foresee its purchase under EFET contract - Naftogaz

Agreements with the European Bank for Reconstruction and Development (EBRD) on providing Naftogaz Ukrainy with $300 million foresee gas purchases under EFET contracts (the European Federation of Energy Traders).

"In order to avoid any unique circumstances it was decided to use standard EFET contracts," Director for Business Development at Naftogaz Yuriy Vitrenko told reporters.

According to him, Russia's Gazprom is unlikely to agree to sign an EFET contract with Naftogaz, therefore it is planned to buy gas from European traders.

"We have a very unique contract with Russians and the likelihood that they will deliver under the EFET contract is equal to zero," Vitrenko said.

As reported, the EBRD is considering the possibility of issuing trade financing of up to $300 million to Naftogaz Ukrainy under state guarantees to cover the financial gap that occurs between gas procurement and sale.

The project, within which Naftogaz could obtain funds, has passed a conceptual review and is expected to receive a final decision soon.