Naftogaz Secures €300 Million for Winter Gas Amidst Production Challenges

Ukraine's state energy company, Naftogaz, has finalized a €300 million loan with the European Investment Bank to bolster its gas supplies ahead of the challenging winter heating season. This financing is a critical measure given recent disruptions in domestic production caused by Russian strikes on facilities, which resulted in a 40% decrease in output.

In a significant commitment, Naftogaz has vowed to channel an amount equal to the loan into renewable energy and decarbonisation initiatives. CEO Sergii Koretskyi emphasized the importance of this support, assuring that it strengthens the nation's energy resilience against upcoming cold months, with gas storage levels nearing 95-98% of their targets.

The loan enables Naftogaz to procure around 0.6 billion cubic metres of gas, excluding Russian sources, with a noticeable increase in imports of U.S. liquefied natural gas (LNG), which now make up 8% of its total acquisitions. Naftogaz is actively securing gas supplies as Ukraine prepares to import at least 13.2 billion cubic metres for the 2025/26 heating season.

(With inputs from agencies.)