In preparation for the upcoming heating season, Ukraine’s state-owned energy giant Naftogaz borrowed Hr.4.7 billion ($113 million) from PrivatBank, Ukraine’s largest state-owned bank
In 2025, Russia repeatedly attacked Ukraine’s gas production, posing a serious likelihood that Ukraine might not have enough gas for the coming winter. In response Naftogaz instituted a range of measures to secure gas supplies to service the heating season.
PrivatBank’s loan will be used to amass the necessary gas reserves in underground storage facilities for the upcoming 2025–2026 heating season, according to the press release of the state-owned gas company.
PrivatBank’s Largest Loan Since 2018 Aims to Bolster Energy Security
The loan is the largest made by Ukraine’s largest state-owned bank since 2018, when the bank was nationalized being previously owned by the Ukrainian oligarch Ihor Kolomoisky. The nationalization took place because of the bank’s regulatory capital reached negative levels and a $5.5 billion fraud, resulting in a significant loss of funds, was detected according to investigations by Kroll.
Since then, PrivatBank has recovered to become the largest single player on the market. On Wednesday Ievgen Zaigraiev, Pritavbank’s Chief Corporate and SME Business Officer said the Naftogaz loan marked a new record since nationalization.
“PrivatBank has provided Naftogaz with financing worth Hr. 4.7 billion ($113 million) –the bank’s largest deal since its nationalization. The corporate banking team prepared the deal in record time to support Ukraine’s energy security,” Zaigraiev wrote on Facebook.
US LNG, EBRD Funds, and Balkan Gas Corridor Support Ukraine’s Heating Season
PrivatBank’s loan gave Naftogaz another tool in its attempts to ramp up supplies ahead of the heating season. Alongside EBRD loans, establishing a new gas supply route from abroad and US LNG supplies will allow gas injection to Ukraine’s underground storage facilities to be stepped.
“At the same time, we continue to work with international financial institutions and partner countries. I am grateful to the management of PrivatBank for their quick response to our request,” the press release said, citing Naftogaz CEO Sergii Koretskyi.
Naftogaz also secured 140 million cubic meters of liquefied natural gas (LNG) from the US to be transported by the Polish company ORLEN, Kyiv Post previously wrote citing another Naftogaz press release.
That deal marks the fourth gas supply contract signed between Naftogaz and this year which brings the total shipped to 440 million cubic meters of LNG ahead of 2025’s heating season.
Apart from LNG, the state-owned company is speeding up gas injection into Ukraine’s underground storage facilities. By the start of the next heating season – November 1 – Ukraine needs to accumulate at least 13 billion cubic meters of gas in storage with just over 9 billion cubic meters stored at July 17, according to ExPro data.
Another loan for the heating season is from the European Bank for Reconstruction and Development (EBRD) – the bank lent Ukraine’s state-owned gas giant €270 million ($307 million) to finance emergency gas purchases overr the next two heating seasons.
The amount of gas Naftogaz will purchase with it is unknown for now, EBRD Vice President Matteo Patrone previously told Kyiv Post.
“We don’t know [how much gas Naftogaz will import]. It depends on the price of gas,” Patrone said.
This collaboration will, however, help to ensure Ukraine has sufficient gas reserves and can meet its energy needs during peak demand, Patrone said.
Part of the loan consists of a grant from the Norwegian government of €138.6 million ($149.6 million funded by the EBRD Crisis Response Special Fund.
Naftogaz borrowed another $41.6 million loan from EBRD to invest in modern mobile drilling rigs, boosting domestic production. Ukrgasvydobuvannya, a subsidiary of Naftogaz Group, bought new mobile drilling rigs with lifting capacities of 125 and 180 tons. This will improve the company’s ability to carry out complex well workovers, especially at greater depths.
Ukraine is also set to unveil the new Trans-Balkan gas transportation route through Bulgaria, Romania, and Moldova, providing an alternative and competitive route for natural gas supplies.