Public Joint Stock Company "Ukrnafta" and the European Bank for Reconstruction and Development (EBRD) signed a loan agreement for EUR 80 million on Friday in London, reported the Ministry of Economy of Ukraine.
The financing aims to supply and install gas distributed power plants and cogeneration capacities with a total volume of approximately 100 MW across various regions of Ukraine.
"Today's agreement is the first under a major investment package for state and private companies, approved by the bank's Board of Directors on December 4. The EUR 80 million loan provided to "Ukrnafta" will help construct a new modern gas generation facility that will enhance Ukraine's energy resilience," said Ukraine's First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko.
Additionally, the EBRD loan will be co-financed through investment grants of EUR 9.5 million from the Netherlands and EUR 12.5 million from the USA, which will be allocated through a special EBRD fund and will enable "Ukrnafta" to build additional gas distributed generation capacities.
"Given the constant Russian attacks on energy facilities, the new capacities will be a crucial element in meeting current energy needs and ensuring long-term stability," wrote "Ukrnafta" CEO Sergey Koretsky on Facebook.
According to him, the agreement with the EBRD for "Ukrnafta" is not only about attracting funds but also about confirming its transformation into a transparent company that operates under the best OECD corporate standards and demonstrates good financial results.
"The start of cooperation with the EBRD marks the beginning of a new phase, distinguishing the entire state management team and the twenty-thousand-strong workforce. This signifies that "Ukrnafta" meets the high EBRD requirements for its clients, has undergone thorough scrutiny, and complies with standards," he added.
"Ukrnafta" is the largest oil production company in Ukraine and operates the national network of gas stations. In March 2024, the company took over the management of Glusco's assets and currently operates 547 gas stations – 462 owned and 85 under management.
The company is implementing a comprehensive program to renew its operations and revamp the format of its gas station network. Since February 2023, it has been issuing its own fuel vouchers and "NAFTAКарта" cards, sold to legal entities and individuals through LLC "Ukrnafta-Postach".
"Ukrnafta" holds 92 special permits for industrial development of fields. It has 1832 oil and 154 gas production wells on its balance sheet.
The largest shareholder of "Ukrnafta" is the National Joint Stock Company "Naftogaz of Ukraine" with a share of 50%+1 share. In November 2022, the Commander-in-Chief of the Armed Forces of Ukraine made a decision to transfer the state's corporate rights in the company, previously owned by private owners, which is now managed by the Ministry of Defense.