The European Commission has signed a guarantee agreement with EBRD to enable an unprecedented €500 million loan for Ukraine’s energy security. The financing will allow the state-ownedcompany Naftogaz of Ukraine (NAK) to finance emergency gas purchases. The Commission will guarantee 90% of the loan within the amended HI-BAR programme financed under the EU’s Ukraine Investment Framework.
The financing follows major Russian attacks on the company’s upstream gas production and processing facilities. These attacks on civilian infrastructure occurring at increased intensity in the first half of 2025 have resulted in significant production losses and a stress situation on the reserves of the country ahead of the next winters. Replenishing the depleted gas reserves of Ukraine with the help of this financing package will be key to allow the country’s critical infrastructure and population to access energy sources during the winter. Naftogaz will source natural gas competitively.
Upon reimbursement of the two-year loan, the EBRD and the Commission will reallocate the available guarantee coverage to capital investment projects enabling long-term private and public investments, for instance in the renewables sector.
Background
The Ukraine Investment Framework is part of the €50 billion EU’s Ukraine Facility designed to attract public and private investments for the recovery and reconstruction of Ukraine. It is endowed with financial instruments totalling €9.3bn, with €7.8bn in loan guarantees and €1.5bn in blended finance. The aim of the Ukraine Investment Framework is to mobilize €40bn of investments for the recovery, reconstruction, and modernization.
