IMF rejects possibility of budget financing of gas import in Ukraine

MOSCOW. July 1 (Interfax) - While importing gas for the next heating season, Naftogaz Group will rely on support of international financial organizations and donors, its own resources and loans from Ukrainian banks, no budgetary expenses are envisaged to that end, Ukrainian media outlets said, citing the Extended Fund Facility (EFF) program, updated following its eighth review, published on the International Monetary Fund's (IMF) website on Tuesday.

"Naftogaz is implementing a comprehensive plan to import gas in 2025 to replace the domestic production lost due to the crisis. To finance these gas purchases, Naftogaz is expected to rely mostly on IFI and bilateral donor support, with the remainder financed through its own cash buffers and domestic bank financing; no additional budgetary outlays for gas imports are expected," the EFF program said.

In early 2025, up to 50% of Naftogaz's gas infrastructure was temporarily damaged, resulting in a drastic decline in gas production and a decrease in its amounts in reserves reaching to an all-time low, it said.

As reported, Naftogaz Commercial Director, Board member Dmitry Abramovich said in later March 2025 that Ukraine needed to import 4.5 bcm to 4.6 bcm of gas by the start of the next heating season before November 1, 2025.