Naftogaz Group signed a €127 million ($147 million) investment grant agreement with the European Investment Bank (EIB) to finance natural gas purchases for the upcoming heating season, the company said on Wednesday.
The grant strengthens Ukraine’s ability to secure enough natural gas for the heating season as Russia continues targeting its energy infrastructure.
The €127 million grant follows a separate €300 million ($348 million) EIB loan to Naftogaz that was signed and fully disbursed in October.
The funds are provided by the European Union with financial support from the Government of Norway, Ukraine’s state-owned energy company reported in its press release.
“This is an important and, above all, timely support that will help ensure stable gas supply during the heating season. We are grateful to the European Commission, the Government of Norway, and the EIB,” the press release quoted Naftogaz CEO Sergii Koretskyi.
According to the statement, the agreement falls under the Ukraine Investment Framework, a mechanism created to mobilize public and private investment for Ukraine’s recovery and reconstruction in response to Russia’s war.
For the first time, Norway is channeling support directly through this mechanism, reflecting what the EIB called a rapid and coordinated Team Europe response to Ukraine’s urgent energy needs.
“Together, as Team Europe, we are helping to strengthen Ukraine’s energy resilience and keep essential services running amid ongoing Russian attacks. Naftogaz’s commitment to reinvest in renewables and decarbonisation also points the way towards a cleaner and more resilient energy future,” the press release quoted EIB Vice-President Teresa Czerwińska.
The Ukraine Investment Framework itself is part of the Ukraine Facility, the EU’s main financial instrument for assistance to Ukraine.
For 2024-2027, the EU has already promised Ukraine €50 billion ($54.3 billion) of funding through the Ukraine Facility program for the state budget, private investment, and technical assistance. In return, Ukraine must implement economic reforms.
If Kyiv fails to reform the country, it will receive lower tranches and face audits as well as stricter control of the transactions from the EU.
Ukraine imported 2.3 billion cubic meters of natural gas in the first half of 2025, up from 0.12 billion in the same period in 2024, according to DixiGroup, citing Energy Map data. The cost of imports rose to Hr. 49.1 billion ($1.2 billion), compared to Hr. 1.53 billion ($36.4 million) a year earlier.
Naftogaz has signed a memorandum of cooperation with Greek company ATLANTIC-SEE LNG Trade S.A. to develop liquefied natural gas (LNG) supplies from the US to Europe and Ukraine.
The deal makes ATLANTIC-SEE the second company from which Naftogaz will purchase LNG – the first was Poland’s ORLEN.
Naftogaz has been securing financing from Ukrainian banks and international partners to cover import needs before winter. In August, Norway pledged nearly $100 million as part of a €270 million ($307 million) loan from the European Bank for Reconstruction and Development (EBRD).
The EBRD is preparing another €500 million ($585 million) package to fund urgent gas imports, its Vice President Matteo Patrone told Kyiv Post in an exclusive interview.