Ukraine granted $300m loan for winter gas

A $300 million (£198m) loan for Ukraine to buy gas for this winter has been approved. The European Bank for Reconstruction and Development (EBRD) said the cash will be used […]

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By Priyanka Shrestha

A $300 million (£198m) loan for Ukraine to buy gas for this winter has been approved.

The European Bank for Reconstruction and Development (EBRD) said the cash will be used by state-run energy company Naftogaz to buy natural gas to store for the winter period.

It follows the announcement Ukraine plans to resume fuel purchases from Russia, ending a three-month halt.

Delivery will start from 1st October to end of March 2016 follows months of negotiation.

Riccardo Puliti, EBRD Managing Director, Energy and Natural Resources, said: “This project is another important landmark in the reform of Ukraine’s gas sector.

“Our loan will support key areas such as the establishment of a truly independent regulator, the improvement of tariff methodology as well as the introduction of a gas network code. It will contribute to better governance and financial sustainability of Naftogaz.”