Records 500 million euros in funding to be allocated by the EBRD to Naftogaz for winter gas purchases
The Ukrainian company Naftogaz has secured a €500 million loan from the European Bank for Reconstruction and Development (EBRD) for gas purchases. This loan will help Ukraine better prepare for the heating season and ensure energy supply for homes during winter.
Rules and Conditions
The loan, a two-year revolving facility, comes with specific rules and conditions. The European Commission has agreed to guarantee 90% of the loan under the amended HI-BAR program, which is part of the EU's Ukraine Investment Framework. This marks the first time such a loan is provided without requiring a sovereign guarantee from Ukraine.
Naftogaz will source natural gas competitively from over 30 prequalified suppliers. The contracts will meet European standards, ensuring transparency and fairness in the procurement process. The primary goal of the loan is to replenish Ukraine's depleted gas reserves ahead of the winter season, ensuring energy security and access to heating for the population and critical infrastructure.
Ukraine Investment Framework
The loan is part of the EU's efforts to bolster Ukraine's energy sector under the Ukraine Investment Framework, which aims to support Ukraine's recovery and long-term growth. Upon repayment of the loan, the available guarantee coverage will be reallocated to support capital investment projects, potentially in the renewables sector, facilitating long-term private and public investments.
Context
The loan is a response to increased Russian attacks on Ukraine's energy infrastructure, leading to significant production losses and depleted gas reserves. This loan is the fourth financial package provided by the EBRD to Naftogaz since the start of the conflict in 2022, bringing the total EBRD financing to €1.6 billion. The EU is providing a guarantee covering 90% of the loan amount under the Ukraine Investment Programme.
Prime Minister Yulia Svyrydenko thanked the EBRD, EU, government, and Naftogaz teams for their support and professional work. This is the largest project by the EBRD in Ukraine. The loan was signed by Naftogaz and the EBRD. In April, it was reported that the EBRD plans to allocate around €1 billion in 2025 to help Ukraine restore its damaged energy sector and enhance its energy resilience.
[1] European Bank for Reconstruction and Development. (n.d.). Ukraine: Naftogaz secures €500 million loan from EBRD for gas purchases. Retrieved from https://www.ebrd.com/news/2025/ukraine-naftogaz-secures-500-million-loan-from-ebrd-for-gas-purchases.html
[2] European Commission. (n.d.). Ukraine: €330 million financing for Naftogaz from Norway through the EBRD. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/IP_25_3106
[3] European Commission. (n.d.). Ukraine: €500 million loan for Naftogaz from the EBRD. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/IP_25_3106
[4] European Commission. (n.d.). Ukraine: €500 million loan for Naftogaz from the EBRD. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/IP_25_3106
- The EU's Ukraine Investment Framework, which aims to support Ukraine's recovery and long-term growth, includes the loan provided to Naftogaz by the EBRD for gas purchases, as part of its efforts to bolster Ukraine's energy sector.
- The€500 million loan from the EBRD to Naftogaz, which comes with specific rules and conditions, is intended to replenish Ukraine's depleted gas reserves, ensuring energy security and access to heating for the population and critical infrastructure, particularly in response to increased Russian attacks on Ukraine's energy infrastructure.
- The Ukrainian energy sector's future may see increased investment in renewable energy sources, as upon repayment of the loan, the available guarantee coverage will be reallocated to support capital investment projects in this sector.
