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The International Finance Corporation (IFC) is considering the allocation of a EUR 300 million loan to traders to buy and store natural gas in the underground storage facilities, and then sell it on the Ukrainian market, said Ukrainian Energy Minister Volodymyr Demchyshyn on Thursday, July 16.
"The IFC is considering the possibility of providing a loan to a trader, which would take [gas] on its balance sheet, store it and then sell it, for example, to Naftogaz of Ukraine. Various schemes are being discussed," Demchyshyn said.
There are several traders that are ready to cooperate using the proposed scheme, according to the minister.
Demchyshyn also noted that during the U.S.-Ukraine Investment Forum, Energy Ministry held a number of meetings with financial institutions to discuss attracting loans worth nearly $1 billion for buying gas in Ukraine.
"We held several meetings in the United States with government officials and financial institutions like the IFC, OPIC and the World Bank. I think that in the near future, the solution on financing the purhcse of gas for the heating season will be found," the minister said.
As UNIAN reported earlier, Chief of Naftogaz of Ukraine NJSC Andriy Kobolev previously stated that Ukraine needed about $1.5 billion to secure necessary gas reserves in its underground gas storage facilities for the next heating season.
On July 1, Ukraine suspended gas imports from Russia and significantly reduced its purchases from the EU.
On July 8, the energy minister stated that negotiations with the donors regarding loan funds mobilization for gas purchases had not brought any tangible results.
At the same time, the European Bank for Reconstruction and Development (EBRD) pledged to allocate approximately $300 million to support Ukraine in arranging gas supplies from the European Union.
Vice-President of the European Commission (EC) on Energy Union Maros Sefcovic confirmed the EC intentions to facilitate negotiations with international financial institutions on attracting necessary funds to carry out gas purchases.
UNIAN’s memo. The International Finance Corporation is a member of the World Bank Group that offers investment, advisory, and asset management services to encourage private sector development in developing countries. Since 2004, the IFC has invested $2 billion in Ukraine and mobilized another $760 million through other investors.