Aequo advised Naftogaz of Ukraine on securing a €300 million loan from the European Investment Bank (EIB)

Aequo advised Naftogaz of Ukraine on securing a €300 million loan from the European Investment Bank (EIB). The facility will be directed to the purchase of natural gas to ensure reliable supply and strengthen Ukraine’s energy security.

This transaction represents an important step in expanding cooperation between Naftogaz and international financial institutions. The EIB support comes within the framework of the Bank’s efforts to enhance Ukraine’s energy resilience amid the challenges posed by the ongoing war. The loan is backed by the guarantee of the European Commission within the Ukraine Investment Framework programme.

The financing will enable Naftogaz to purchase gas for strategic reserves on competitive terms from European suppliers, ensuring that Ukraine is better prepared for the upcoming heating season and can meet domestic demand without interruption.

Another distinctive feature of this transaction is its focus on renewable energy and decarbonisation. To this end, Naftogaz undertakes to reinvest an amount equivalent to the EIB loan in renewable energy and decarbonisation projects after a certain period of time.

“This transaction demonstrates the readiness of international financial institutions to support Ukrainian companies even during wartime. It confirms the resilience of Ukrainian business and its ability to implement strategic projects aimed at strengthening the country’s energy security”, commented Yulia Kyrpa, Executive Partner at Aequo.

The Aequo team worked closely with the Legal Team and Treasury department of Naftogaz, assisting with negotiations of the finance documentation and fulfilling conditions precedent.

The Aequo team included Oleg Krainsky, Counsel, Dmytro Shudrenko, Konstantyn Dovhan, and Sofiia Voloshanivska, Associates, and was led by Yulia Kyrpa, Executive Partner.