The largest natural gas producer in Ukraine has been granted a loan worth €51.9 million (£47m) to boost domestic production and reduce the country’s dependence on imports.
The loan from the London-based European Bank for Reconstruction and Development (EBRD) will also enable Ukrgasvydobuvannya (UGV) – a fully-owned subsidiary of Naftogaz – to improve the efficiency and transparency of the sector.
Up to €36.4 million (£33m) will be used to finance the procurement of workover rigs, which will help increase natural gas production at existing fields and up to €15.5 million (£14m) will support the introduction of Organic Rankine Cycle waste heat recovery systems at UGV’s site in Lokachi in western Ukraine.
The Bank states: “The EBRD’s long term commitment to the reform of the gas sector in Ukraine has already allowed UGV to implement a robust environmental and social action plan.
“Effective compliance and anti-corruption measures have also been implemented both at UGV and at the Naftogaz Group level.”