EBRD provides $590m to Ukraine's Naftogaz for emergency gas purchase

The European Bank for Reconstruction and Development (EBRD) has provided a €500 million loan (almost $590 million) to the national gas company Naftogaz (NAK) for emergency gas purchases for Ukraine.

The loan is geared at reinforcing Ukraine’s energy security, which has been compromised by repeated targeted attacks from Russia this year.

This agreement marks the Bank’s largest single loan facility in Ukraine to date, said the EBRD in its statement. 

The EBRD’s loan is backed by a European Union guarantee covering 90% of the loan amount, that is provided under the European Union’s Ukraine Investment Framework—an initiative aimed at unlocking financing for Ukraine’s recovery and long-term growth.

This latest financing to Naftogaz comes in response to severe Russian attacks on the company’s upstream gas production and processing facilities during the first half of 2025. These attacks have caused significant production losses and increased the need for gas imports, as the company works to restore its damaged infrastructure.

This is the fourth finance package the EBRD has provided for Naftogaz since Russia launched its full-scale war on Ukraine in 2022. It brings the total Bank financing to Naftogaz to €1.6 billion (almost $1.90 billion), including €1.27 billion (around $1.5 billion) in EBRD loans and €330 million (around $386 million) in grants provided by Norway via EBRD.

According to the Bank's statement, the transaction will also support the reform objectives of previous EBRD engagement, with Naftogaz working towards the integration of the Ukrainian gas market with that of the EU.

Naftogaz will source natural gas competitively from 30 pre-qualified gas suppliers with contracts based on standards of the European Federation of Energy Traders.

"Replenishing the depleted gas reserves of Ukraine with the help of this financing package will be key to allow the country's critical infrastructure and population to access energy sources during the winter," the EU statement said.

"Upon reimbursement of the 2-year loan, the EBRD and the Commission will reallocate the available guarantee coverage to capital investment projects enabling long-term private and public investments, for instance in the renewables sector," it added.

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