The loan was announced in the context of Ukraine's energy infrastructure being continuously attacked by Russia.
The European Commission has just signed an agreement with the European Bank for reconstruction and Development (EBRD) to guarantee 90% of loans under the revised HI- 0d program, under the EU Investment Fund for Ukraine.
The loan would allow Ukrainian division Naftogaz to buy additional emergency gas, making up for the shortfall caused by consecutive attacks on gas exploitation and processing facilities.
The EU delegation to Ukraine stressed that large-scale airstrikes in the first half of 2025 have caused a serious decline in Ukraine's gas production, putting the country in a state of stress over reserves before winter. The new funding will be key to helping Ukraine maintain essential infrastructure and ensure energy for people in the coming cold months.
Under the deal, after Ukraine repays the two-year loan, EBRD and the EU will reallocate the guarantee fund to invest long-term in sustainable energy projects, especially renewable energy.
Previously, Ukrainian Prime Minister July Svyrydenko also confirmed that Naftogaz and EBRD had signed a historic contract worth 500 million euros for gas purchases, considering this an important step to ensure national energy security.
