Ukraine granted $500m loan for gas supplies

Ukraine has secured its gas supply for the coming winter, thanks to a loan worth $500 million (£405m). The money from the World Bank allows national gas company Natfogaz to buy […]

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By Jacqueline Echevarria

Ukraine has secured its gas supply for the coming winter, thanks to a loan worth $500 million (£405m).

The money from the World Bank allows national gas company Natfogaz to buy gas from Europe to meet the demand of consumers.

The guarantee is part of the Bank’s plans to support wider reforms in the country’s energy sector.

This includes helping implement structural reforms of Naftogaz and improve the delivery of subsidies effectively to the most vulnerable segments of the population.

Satu Kahkonen, World Bank Country Director for Belarus, Moldova and Ukraine said: “The guarantee the Bank’s Board approved today will help secure adequate gas supplies for the coming two years. It would also help improve the financing and contract terms for such gas purchases, which will ultimately benefit households in Ukraine.

“Ukraine has the potential to reduce its gas imports over time. To achieve that, the country needs to combine increased domestic production of gas with better investments in energy efficiency.”

Fossil fuels, renewables, nuclear and the effects of Brexit will form part of the discussions at the Energy Live 2016 conference on November 3rd in London. Limited free tickets available for energy end users and university students.