Ukrainian state energy firm Naftogaz is in talks with Russia's Gazprombank for a $2 billion loan with a term of up to seven years to finance gas purchases for the next heating season, the government said on Thursday, March 29.
Naftogaz buys gas from Russia’s Gazprom, the main shareholder of Gazprombank, and pays about $1 billion a month. At the same time, it receives money from Gazprom for shipping its gas to Europe.
According to an announcement posted on a state procurement website, Naftogaz chose not to engage other potential lenders because it needed the money urgently.
Last November, Naftogaz borrowed $550 million from Gazprombank to finance its gas purchases.
Ukraine has been trying for more than a year to renegotiate its current gas deal with Russia, seeking a lower price. But the talks have so far failed to yield any tangible results.
