NAK "Naftogaz of Ukraine" plans to import gas in the range of 2-3 billion cubic meters, as stated in the published memorandum on economic and financial policy for the 5th review of the EFF program with the IMF.
"For the upcoming heating season of 2024/25, Ukraine is planning additional gas imports for domestic consumption of up to 2-3 billion cubic meters, while additional gas may be stored by non-residents for the needs of EU countries according to the baseline scenario," the document notes.
It is also mentioned that restrained domestic consumption and increasing domestic production have limited the need for gas imports in the past heating season.
Regarding import plans for the current heating season, it is noted that "Naftogaz" has secured additional financing for gas imports from the EBRD and bilateral donors.
If "Naftogaz" encounters liquidity shortages, the government is prepared to assess the amount of compensation for the company's special obligations (PSO) in 2025 based on its actual documented expenses verified by the State Audit Office and other stakeholders. Relevant calculations are to be completed by the end of August 2025.
"Potential pressure on expenses related to gas imports and PSO compensation will be accounted for by adjusting fiscal balance targets, taking into consideration the aforementioned assessment, the results of the audit of the debts of heating supply organizations (TKE), available financing, and will be capped at 60 billion UAH (approximately 0.8% of GDP)," the document states.
It also notes that the reform agenda in the energy sector, "as soon as conditions allow," includes an additional gradual increase in gas and electricity tariffs with parallel support for vulnerable consumers, and after the war, there will be a need to restore and enhance competition in wholesale and retail gas markets.
The government is expected to adopt a roadmap for the gradual liberalization of gas and electricity markets with an implementation plan indicating timelines for the period following martial law.
As reported, the head of the "Naftogaz" Group, Alexey Chernyshov, noted in early October in a comment to "Energy Reform" that as of November 1, the company's gas procurement in "customs warehouse" (CW) mode, carried out as a reserve through EBRD financing, would amount to "around 500-600 million cubic meters."
At the end of 2022, "Naftogaz" secured a loan from the EBRD under state guarantees amounting to EUR 300 million, which created a reserve of natural gas totaling 748 million cubic meters in "customs warehouse" (CW) mode.
A new loan agreement from the EBRD to "Naftogaz" for EUR 200 million under state guarantees was signed in November 2023. It was stated that it would take effect after the arrangement of state guarantees. The credit risk with the bank was shared by Norway and the Netherlands.
The CW mode allows natural gas to be stored in Ukraine's underground gas storage for three years without paying taxes and customs duties during its further transportation from the country.