Naftogaz needs European guarantees for new loans - EBRD
MOSCOW. April 18 (Interfax) - Naftogaz of Ukraine has practically exhausted the resource of state guarantees for loans, and the European Commission could become the next guarantor of external loans for the company, European Bank for Reconstruction and Development (EBRD) Board Alternate Director for Ukraine Artem Shevalev said.
"The European Commission should promptly consider the possibility of using its guarantee resources to cover Naftogaz's risks as a borrower," Ukrainian media said, citing Shevalev's statement at an event in Kiev.
"If there is a political decision, mobilizing the necessary funds to go through the gas purchase season in spring will not be an issue," he said.
Shevalev said he was hoping the 270-million-euro loan agreement between the EBRD and Naftogaz and a 140-million-euro grant agreement with Norway would be signed in the coming days. He said that would not be enough, given that 1 billion to 2 billion euros would be necessary for gas purchases.
"How can the gap be filled? This is what we are all racking our brains over now. The chief question is how to provide the guarantee against the risks. The pending 270-million-euro loan will be given on Ukraine's sovereign guarantee. Yet we are fully aware that this resource has been fully exhausted," he said.
The IMF sets rather strict limitations, including those for state guarantees available to the Finance Ministry, Shevalev said.
He added that they "had to be quite creative" to provide the 270-million-euro loan for Naftogaz, while cooperation with the European Union should serve as a resource for larger amounts.
The European Union should be cooperative, considering Ukraine's focus on entering into the EU and the possible implications from risks to the Ukrainian energy sector for European markets or energy security, Shevalev said.
As reported, Center for Energy Research Director Alexander Kharchenko said at the same event that, to his knowledge, Naftogaz had borrowed from $400 million to $500 million, but it needed from $2 billion to $2.5 billion to import 4.5 billion cubic meters of gas by the beginning of the heating season.
In the opinion of Kharchenko, mutual settlements in compensating tariff differences will add up to $1.5 billion to Naftogaz's own equity. "This can rid Naftogaz of current debts and allow it to get another $1.2 billion. Not grants, but loans," he said.
Advisor to the Ukrainian prime minister, Deputy Chair of the Naftogaz Supervisory Board Natalia Boiko said for her part that Ukraine was conducting negotiations with several countries, including Norway and Canada, on gas grants.
