«Naftogaz of Ukraine» signed a loan agreement of $500 million for the purchase of gas

«Naftogaz of Ukraine» signed a loan agreement of $500 million for the purchase of gas© 2016 AFP/ Sergey Bobok

«Naftogaz of Ukraine» signed a loan agreement on attraction of credit lines under the guarantee of the world Bank for 500 million dollars for the purchase of gas, said on Saturday the press service of the company.

«NAK «Naftogaz Ukraine» have signed a loan agreement with Citi and Deutsche Bank to receive Euro-denominated renewal line of credit for gas purchases in the amount equivalent to 500 million dollars. The credit line provided by a guarantee of the world Bank, which in turn provided a state guarantee in the framework of the additional energy of formation of the Fund», — stated in the message of the company.

The action line of credit is four years: two years for gas injection and two years to repay the loan. It is reported that the loan terms are economically advantageous compared to other loan agreements «Naftogaz». Under the terms of the contract, «Naftogaz» will continue to buy gas at existing contracts, changing the form of payment from advance payment to payment after delivery. Thus «Naftogaz» is obliged to repay the loans within 12 months from the date of their issuance.

The agreement also provides that «Naftogaz» will be able to use the credit for pumping gas with both Western and Eastern directions. The decision about the areas of gas imports will be made on the basis of competitive quotations.

Earlier, the Finance Ministry of Ukraine said that the Board of the world Bank approved the allocation of «Naftogaz» guarantees for a loan of $ 500 million, this money will be enough for the heating season. The world Bank expects that these funds will be sufficient for the purchase of «Naftogaz» of gas within two years.