Ukraine lent $520m to buy gas

Ukraine has been granted loans totalling $520 million (£339m) to buy gas for the winter. The European Investment Bank (EIB) and the World Bank signed an agreement under EU guarantee […]

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By Priyanka Shrestha

Ukraine has been granted loans totalling $520 million (£339m) to buy gas for the winter.

The European Investment Bank (EIB) and the World Bank signed an agreement under EU guarantee to help the nation’s gas firm Naftogaz.

It is part of the support by the European Union and international financial institutions, under which the EIB guarantees World Bank investment development projects in Ukraine.

The news comes after Russia agreed to resume gas supplies to Ukraine this winter under a deal set with the European Commission.

EIB President Werner Hoyer said: “European and global institutions are committed to helping Ukraine avert a potentially severe energy crisis as winter approaches. The guarantee agreement we signed today will facilitate Ukraine’s purchase of gas at a critical time.

“The deal reflects the EIB’s enduring support for Ukraine as part of EU cooperation with the country and the Union’s Eastern Neighbourhood region.”

The European Bank for Reconstruction and Development (EBRD) is also lending $300 million (£198m).