You're reading: Kobolev says Naftogaz to pay $300 million loan to EBRD in January

National joint-stock company Naftogaz Ukrainy in January 2018 would pay the credit line provided by the European Bank for Reconstruction and Development (EBRD) for purchase of natural gas, Naftogaz Head Andriy Kobolev told reporters in Kyiv on Jan. 17.

He said that Ukraine has not fulfilled some conditions of the contract and Naftogaz has been deprived of the option to automatically extend the line.

“It is hard to say if the EBRD wants to start negotiations with the government on the prolongation of the line in this situation,” he said.

Kobolev said that due to existing problems with the International Monetary Fund (IMF), the World Bank also is not ready to provide a $500 million credit line for purchase of gas by Ukraine.

“All this tension between Ukraine and ISIs [international financial institutions] cost $300 million to Naftogaz, and would cost $800 million of the cheap loan at 1 percent per annum,” Kobolev said.

He believes that the loss of cheap loans and multibillion debts of gas supply companies to Naftogaz are the two largest problems of the company in 2018.