The European Bank for Reconstruction and Development (EBRD) has announced it will lend up to €300 million (£260m) to help Ukraine’s gas company Naftogaz compensate for the loss of natural gas production following the war in Ukraine.
The state-owned gas firm plans to spend €50 million (£43.4m) on purchasing emergency gas stocks that are needed to prepare Ukraine‘s gas grid for the next heating season.
The company also aims to raise a total of €1 billion (£870m) to buy up to one billion cubic metres of gas, which is critical to ensure there is enough gas in the system by autumn.
Alain Pilloux, EBRD Vice President, said: “The urgency to act is clear. Gas is needed: for the next heating season, for electricity production, and more broadly for supporting the economy.
“The replenishing of gas stocks must start now to avoid serious consequences in the autumn. This operation is very simply about providing heating to the people and economy of Ukraine.”