Naftogaz Gets $60M Ukreximbank Loan Ahead of Heating Season

Ukraineʼs state-owned gas giant Naftogaz Group secured the first Hr 2.4 billion loan ($60 million) from Ukraine’s state-owned Ukreximbank, the company reported in a press release on Wednesday.

The funds will finance the production needs of Ukrgasvydobuvannya – a subsidiary of Naftogaz, responsible for exploring, extracting, and producing natural gas in Ukraine. 

“This is yet more practical assistance in preparation for the autumn-winter period,” the press release citing Naftogaz CEO Sergii Koretskyi said.

This is not Naftogaz’s first round of borrowing this season, as the company has been securing funds from other Ukrainian banks to prepare for the winter heating period. Naftogaz took out loans from two Ukrainian banks – Ukrgasbank and PrivatBank.

April estimates say Russian strikes on Ukrainian gas infrastructure are estimated to have cut Ukraine’s domestic production by 50%, meaning the country will need to import more European gas for the heating season. Since then, Ukraine has restored half of its production capacity, while it seeks alternative sources to secure winter supplies.

To bolster Ukraine’s gas security, Naftogaz is implementing various measures, including accepting support from the Norwegian government, Polish company ORLEN, and the European Bank for Reconstruction and Development (EBRD).

In August, the Norwegian government announced that it will provide nearly $100 million to Naftogaz for the importation of natural gas to secure heating and electricity for households, businesses and industry.

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In the same month, the company received a $586 million loan from the EBRD to finance emergency natural gas purchases.

Naftogaz also recently secured 140 million cubic meters (5 billion cubic feet) of liquefied natural gas (LNG) from the US to be transported by the Polish company ORLEN.

As of Sept. 14, Natural gas reserves in Ukraine’s underground storage facilities (UGS) have surpassed last year’s levels, reaching 12.055 billion cubic meters (425.7 billion cubic feet), according to data from consulting agency ExPro.

The figure is marginally higher than the 12.05 billion cubic meters (425.5 billion cubic feet) recorded on the same date in 2024, an increase of a little under 0.05%. However, it marks an important milestone in Ukraine’s race to fill its gas reserves ahead of winter after Russian attacks that destroyed critical energy infrastructure.