The Ministry of Finance Signed Agreements that will allow JSC "Ukrgazvydobuvannya" to Receive EUR 51.85 million of State-Guaranteed Loan from the EBRD

"Ukrgazvydobuvannya" will receive a state-guaranteed loan from the European Bank for Reconstruction and Development (EBRD) in the amount of EUR 51.85 million. 

Today, on July 31, 2020, the ceremony of signing the agreements within the project aimed at financing the procurement of workover rigs and a package of energy efficiency investments at JSC "Ukrgazvydobuvannya" took place. The following agreements were signed:
-    Guarantee agreement between Ukraine and the EBRD
-    Loan agreement between JSC "Ukrgazvydobuvannya" and the EBRD
-    Project agreement between NJSC Naftogaz of Ukraine and the EBRD.
The first tranche of the EUR 36.4 million loan is attracted for 9 years and the second tranche of EUR 15.45 million - for 15 years with a 3-year grace period. The interest rate is floating (6-month EURIBOR + 1% per annum); commitment fee is 0.5% per annum; a one-time commission is 1%.

The funds will be used under the current EBRD project for the JSC "Ukrgazvydobuvannya" to finance the procurement of workover rigs, which will help increase natural gas production at existing fields. Up to EUR 15.5 million will be used for the introduction of innovative Organic Rankine Cycle waste heat recovery systems at Lokachi power plant (Volyn region).

In general, the implementation of the Project will allow JSC "Ukrgazvydobuvannya" to increase the efficiency of natural gas production and implement best practices to improve energy efficiency.

"We are grateful to our partners from the EBRD for their consistent support to Ukraine on the way to modernizing infrastructure and improving the efficiency of our production facilities. The project that we are launching today provides, at the same time, funds that will intensify natural gas production and help increase Ukraine's energy independence", - said the Minister of Finance of Ukraine Sergii Marchenko.