Ukraine’s Naftogaz Secures €36.4 Million EBRD Loan to Rebuild War-Damaged Drilling Capacity
Ukraine’s state-owned energy company Naftogaz will receive a €36.4 million loan from the European Bank for Reconstruction and Development (EBRD) to upgrade its fleet of drilling rigs, as part of urgent efforts to restore gas production capacity severely damaged by Russian missile strikes.
The Gaze reports on this with reference to Reuters.
The loan will finance the acquisition of new mobile drilling rigs with lifting capacities of 125 and 180 metric tons. These modern rigs will allow Naftogaz to access deeper and more technically complex gas wells, while accelerating repairs at existing production sites across the country.
“This investment will not only strengthen our ability to operate in more challenging geological environments but also enable a faster recovery of damaged infrastructure, which is essential to ensuring a reliable gas supply for Ukrainian consumers,” said Naftogaz CEO Serhiy Koretskyi in a statement.
Earlier this year, sustained Russian attacks on eastern gas infrastructure led to a production drop of up to 40%, forcing Ukraine to increase both withdrawals from underground storage and gas imports during the winter and spring seasons.
According to former gas transit chief Serhiy Makogon, Ukraine will need to import up to 6.3 bn cubic meters of gas for the 2025-2026 heating season – an effort that could cost as much as $3 bn. In response, Naftogaz is in talks with the Ukrainian government and international financial partners to raise up to €1 bn to purchase over 2 bcm of gas ahead of winter.
The EBRD loan represents a critical component of Ukraine’s broader strategy to stabilize its energy sector and maintain energy security amid the ongoing war.
As The Gaze reported earlier, the French court has granted permission to enforce the Hague arbitration award to compensate Naftogaz for $5bn in damages caused by Russia as a result of the occupation of Crimea.