EIB details Ukraine's Naftogaz plans for winter gas supply - EXCLUSIVE
CE Report presents an exclusive interview with EIB spokesperson on the €50 million loan to Naftogaz, detailing how the funds will be used to secure immediate gas supplies for the winter. The interview also outlines the company’s plans to reinvest in renewable energy and decarbonization projects as part of Ukraine’s broader energy transition strategy.
How will the €50 million EIB loan be allocated between immediate gas procurement and other energy-related needs of Naftogaz?
Naftogaz is to use the entire EUR 50 million bank loan immediately to purchase imported gas. This would maintain strategic gas reserves to ensure the proper functioning of the country's gas supply system across the winter season. In the upcoming years, once the domestic gas production is restored, Naftogaz will reallocate these funds to capital investments that would aim at reducing GHG emissions from its operations.
What mechanisms are in place to ensure that the imported gas financed by this loan does not originate, directly or indirectly, from the Russian Federation?
The origin of the gas is duly monitored at the procurement stage. The gas suppliers competing for deliveries should comply with applicable EU-level restrictions with regard to sanctioned entities, in particular concerning any Russian links, as well as are contractually required not to purchase any gas of Russian origin.
Could you specify the timeline for the disbursement of these funds and the expected period over which the gas purchases will take place?
As the loan agreement was signed in January, the funds were released by EIB in February to buy gas for imminent delivery to support gas security of supply yet for this winter.
What types of renewable energy and decarbonization projects will Naftogaz prioritize under its commitment to reinvest an equivalent amount of the EIB financing?
Since December 2024, EIB also supported Naftogaz Group in the development of its decarbonisation strategy that would define the company’s short-/mid-term plans and long-term strategy for emissions reduction. Identified required investments, which are eligible under EIB’s lending and climate policies, are expected to guide future reallocation of the EIB’s financing. This study is on-going and deliverables are expected in 2026.
How does this operation fit into the broader Ukraine Energy Rescue Plan and the EU’s long-term strategy for Ukraine’s energy resilience?
This operation is one of many operations that implement the Ukraine Energy Rescue Plan of EIB. The purchase of gas is exceptionally allowed by the EIB as a temporary use of funds due to the severe energy security of supply situation in Ukraine this winter. The main long-term objective of EIB, and the European Commission, which guarantees the loan, is to support Ukraine in energy transition towards less emitting (greener) and more resilient infrastructure.
Photo: Wikipedia
This interview was prepared by Julian Müller
