“Naftogaz” signed a loan agreement under the guarantee of the world Bank for $500 million

“Naftogaz” has signed a loan agreement with Citi and Deutsche bank to receive Euro-denominated revolving line of credit for gas purchases in the amount of $500 million, according to the website of the company.

The line of credit is a guarantee provided by the world Bank, which in turn provided a state guarantee in the framework of the formation of the energy Fund pursuant to the resolution of the Cabinet of Ministers of 30 November of the current year, the report says.

The action line of credit is four years — two years for the purchase of gas and two years to repay the loan. Under the terms of the financing under this line of credit “Naftogaz” and will continue to buy gas at existing contracts, changing the form of payment.

The payment confirmation after delivery for providers will be the credit that will be issued by Citi and Deutsche bank and by making payment to turn into loans. Naftogaz will repay these loans within 12 months from the date of issuance. The world Bank guarantees the repayment of these loans from international commercial banks.

The company will be able to use this credit line for the purchase of gas on both the Western and Eastern direction. The decision will be made on the basis of competitive proposals for the supply of gas.

These funds will help “Latigazo” to ensure stable supplies of gas to Ukrainian consumers during this winter, the report says.

That “Naftogaz” will receive from the world Bank loan of $500 million for the purchase of gas, announced in October, Finance Minister Alexander danyluk. He noted that the loan will allow Ukraine to “safely” through the cold season. “Now the Ukrainian house will be fully provided with heating in winter”, — said the Minister of Finance.