Naftogaz Purchase Facility (Ukraine) (DFC-NAFTOGAZ)

Countries
  • Ukraine
Where the impacts of the investment may be experienced.
Financial Institutions
  • US International Development Finance Corporation (DFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 14, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Naftogaz Gas Purchase Facility
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 270.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ DFC website

Updated in EWS Aug 31, 2019

Disclosed by Bank May 23, 2018


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Project Description

According to the Agency's document, this project is a revolving gas purchase facility that allows Naftogaz to buy gas over a period of up to three years at the lowest price available during the summer monts and build up reserves in its storage facilities for sale to Ukrainian residents and businesses in the fall and winter heating season when demand is high and gas supply is more scarce. 

According to the Agency, this project has been screened as Category A regarding environmental and social risks because it involves a major natural gas storage and distribution infrastructure that has potential impacts which can be diverse and irreversible; the potential to impact local infrastructure; and the potential for accidental releases of methane from process upsets resulting in fire and explosion. In addition there are also potential impacts and risks commonly associated with hazardous materials management, solid and hazardous waste management, effluent disposal, occupational health and safety, and community health, safety, and security. 

Investment Description
  • US International Development Finance Corporation (DFC)
Private Actors
Contact Information

No contact information available at time of writing.