The European Bank for reconstruction and development (EBRD) will provide JSC “Ukrgazvydobuvannya” (GWL) credit EUR 51,85 million, which will be aimed at keeping the Ukrainian gas extraction and energy efficiency.

Loan agreement the EBRD signed with a group of “Naftogaz” and the Ministry of Finance of Ukraine, said in a press release NAC.

The loan is in two tranches – EUR 36,4 million EUR 15.45 million and the maturity of the first tranche is 9 years old, the second 15 years. The effective interest rate of approximately 2.5% per annum (according to the current situation in the international interbank market).

The loan is guaranteed by the government of Ukraine. The cost of the government guarantee is 1% of the amount selected and the outstanding loan.

Procurement for both projects will be implemented on a tender platform, the EBRD, according to the Law of Ukraine on public procurement principles and procurement rules of the Bank for projects in the public sector.

The funds raised groundwater table will update their fleet of machines of well workover (red) for works at depths of over 5 km and on the introduction of energy efficient technologies to reduce energy consumption at Lokacijskom fisheries (Volyn region).

“We are actively changing the internal processes of “Naftogaz” to soften the blow from the crisis in the industry. International investment is critical to achieving energy independence, especially with the current unfavorable price situation. The signing of the agreement with the EBRD is the next step to strengthen the country and a testimony to the success of the corporate reform of “Naftogaz”. Such cooperation is a powerful signal to other foreign investors, even in difficult times, Ukraine can and should invest,” – said the head of the NJSC Andriy KOBOLEV.

“More machines cattle will increase the efficiency and effectiveness of our work in depleted fields. The new equipment will allow to perform complex work at considerable depths and, consequently, to maintain production and increase hydrocarbon reserves. And the energy efficiency project will effectively use the energy of the extracted hydrocarbons and to reduce the negative impact on the environment, which is also one of our priorities”, – said General Director of GWL Elena Kobets.

“Ukrgazvydobuvannya”, 100% owned by “Naftogaz of Ukraine” is the largest gas producing company in the country, providing about 75% of total gas production. Also operates Shebelynka GPP.

“Naftogaz Ukraine” unites the largest oil and gas enterprises of the country. The group is a monopolist in natural gas storage in underground storages and the transportation of oil by pipeline transport through the territory of the country.