The Cabinet of Ministers has provided state guarantees to Naftogaz Ukrainy for company to raise a loan of up to $300 million from the European Bank for Reconstruction and Development (EBRD).
“In order to form a stabilization energy fund, to agree with the proposal of the Energy Ministry on providing state guarantees to ensure the fulfillment of Naftogaz obligations on the EBRD loan worth up to $300 million,” reads Cabinet resolution No. 540 dated July 24.
Under the agreement, state guarantees are secured by natural gas purchased at the expense of the stabilization fund money and/or other appropriate security whose collateral value is no less than 100 percent of the guarantee.
The fee for state guarantees is set at 0.001 percent per annum.
