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USA to help Ukraine with gas imports

OPIC will buy Ukrainian gas in summer and sell in winter

USA to help Ukraine with gas imports

The Overseas Private Investment Corporation (OPIC), a US government agency, has approved a project under which it is planned to provide guarantees worth 400m dollars for gas pumping into Ukrainian underground gas storage facilities (UGS) in the interests of Naftogaz Ukrainy.

On its website, OPIC said the project assumes that Goldman Sachs investment bank under the OPIC guarantees will fund gas injection into Ukrainian underground gas storage facilities.

In summer months Naftogaz will sell gas of its production for injection into the underground storage facilities of a specially created company, while in winter the contrary will buy gas from this company.

The total project cost could reach $500m, however OPIC guarantee cover 400m dollars.

On 18 October, the World Bank has provided to Ukraine to 500mn in loan guarantees to finance the imports of gas by Naftogaz Ukrayiny.

In addition, Naftogaz received 300m dollars from the EBRD in the framework of a three-year revolving credit facility agreement signed last year.