Naftogaz will get $200 million from the IFC to buy gas from a French supplier / Photo from UNIAN
The International Finance Corporation (IFC) has decided to lend $200 million to Ukraine's oil and gas giant NJSC Naftogaz of Ukraine for gas purchases from large European gas supplier, France's ENGIE SA.
The IFC reported that the Board of Directors on December 17 approved the disbursement of the funds to Naftogaz, and a loan agreement is now pending signing.
The proposed project consists of up to one year trade finance facility of up to $200 million to cover importation of natural gas to Ukraine during the winter season of 2015-2016 by Naftogaz.
The facility will be used to finance the deliveries of ENGIE under their natural gas supply framework contract with Naftogaz.
"The facility would provide support to a vitally important industry in the country by contributing to the supply of energy, essential for the functioning of the economy, industrial companies, utilities, and for the well-being and protection of residential customers," the IFC said.
As UNIAN reported earlier, another lender of Ukraine, the European Bank for Reconstruction and Development, in October 2015 signed loan and guarantee agreements with Ukraine on a $300 million loan for purchases of gas from European suppliers.