Naftogaz may receive US$ 1.7bn loan

The EBRD, World Bank and European Investment Bank (EIB) have made a preliminary deal with the Government of Ukraine, subject to the implementation of reforms, to offer Naftogaz a combined USD 1.7bln credit to facilitate mid-term natural gas import payments and modernise gas pipelines. Subject to agreed reforms and detailed due diligence, the EBRD is set to provide a sovereign-guaranteed USD 300mln working capital immediately, and up to USD 450mln in 2010 for investments. Dependent on the successful implementation of reforms tied to the IMF stand-by loan, the World Bank may agree to provide USD 500mln to support the gas sector and provide general economic support. The EIB has said it is willing to examine the possibility of providing up to USD 450mn for long-term investment, rather than short-term working capital or gas import needs.

Ukrainian PM Yulia Tymoshenko has announced that Naftogaz had transferred USD 605mln to Gazprom to pay for imported volumes of natural gas in July, Interfax reports. Tymoshenko said these funds were partly sourced from a repayment of Government VAT arrears to Naftogaz, the size of which was not disclosed. The remaining sum was likely sourced from the USD 3.3bln IMF loan tranche, which was transferred to Ukraine last week.

The 3Q09 import price of USD 198.34/tcm means Ukraine has paid for 3.05bcm of gas. Naftogaz management has said that Ukraine has pumped 22.7bcm of gas into underground storage (vs. 20bcm as at July 8), or 84% of the 27bcm target set by Tymoshenko. (Galt & Taggart)