Ukraine starts stockpiling gas with EBRD loan for emergency reserves

The purchase is being made to create a reserve stock of gas for emergency situations, as stipulated in the approved forecast balance of natural gas supply and distribution for Ukraine in 2024 and the first quarter of 2025.

"This is not about importing gas, but about purchasing a volume that will be stored under the customs warehouse regime and used exclusively in case of emergencies and only for business needs," Naftogaz explained.

The company plans to meet the needs of the Ukrainian population through its own gas production.

"According to the planned development of events, gas of our own production will be sufficient to meet the needs of the Ukrainian population," the statement reads.

At the end of 2022, Naftogaz secured a €300 million ($332 million) loan from the EBRD under state guarantees, which was used to create a reserve stock of 748 million cubic meters of natural gas under the customs warehouse regime.

A new agreement for a €200 million ($222 million) EBRD loan to Naftogaz under state guarantees was signed in November 2023. The loan will become effective after the state guarantees are formalized. The credit risk with the bank was shared by Norway and the Netherlands.

The customs warehouse regime allows natural gas to be stored in Ukraine's underground storage facilities for up to three years without paying taxes and customs duties during its subsequent transportation from the country's territory.