NAK Emergency Gas Finance (NAK III) (EBRD-56152)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Ukraine
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 26, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
National Joint Stock Company "Naftogaz of Ukraine"
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Infrastructure
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 290.01 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 270
Converted using 2025-03-26 exchange rate.
Loan Amount (USD)
$ 290.01 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 270
Converted using 2025-03-26 exchange rate.
Project Cost (USD)
$ 438.63 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 408.36
Converted using 2025-03-26 exchange rate.
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS May 26, 2025

Disclosed by Bank May 5, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the EBRD, the project consists of up to EUR 270 million revolving credit facility to National Joint Stock Company "Naftogaz of Ukraine" (the "Company", or "NAK"). The proposed transaction will support Ukraine's energy security through financing of emergency gas purchases over the next two heating seasons. The loan will be backed by Ukraine's sovereign guarantee. The Bank's financing will be complemented by a EUR 138.4 million Norway grant through the EBRD Crisis Response Special Fund.

The strategic importance of the transaction is driven by the energy security objective to ensure uninterrupted gas supply in Ukraine and safeguard vital access to energy for people and communities due to challenges imposed by the war on Ukraine.

The project will support energy security of Ukraine through emergency gas purchases to compensate for disruption of natural gas production and supply due to war inflicted damages on and disruption of natural gas production and supply. The transaction will also support reform objectives of previous engagements with NAK aimed at Ukrainian gas market integration with the EU, in particular through application of competitive procurement mechanism and EFET based gas supply contracts.

The Bank will support NAK with a TC program to broaden access to employment and training opportunities for young women and men across Ukraine.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

As stated by the EBRD, the loan will be supplemented by a EUR 138.4 million grant to be funded by Norway through the EBRD Crises Response Special Fund.

Financing of gas imports to Ukraine is extremely limited (NAK is currently the only gas importer), hence the risk of market distortion and crowding out commercial capital with the proposed loan in the current circumstances is low.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the EBRD, NAK, 100% state-owned vertically integrated oil and gas holding in Ukraine is the country's largest natural gas producer, importer, wholesale trader and supplier of last resort for the population, district heating utilities, electricity generation and public sector.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Naftogaz Client Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Client - National Joint Stock Company "Naftogaz of Ukraine":

Yaroslav Turianskyi
Email: ngu@naftogaz.com
Phone: +380 (44) 5863841
Website: www.naftogaz.com
Address: Bohdana Khmelnitskogo Str. 6 B, Kyiv, Ukraine, 01601

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works