Ukrainian parliament passes law on using $350 mln Canadian loan to buy gas

MOSCOW. Aug 30 (Interfax) - Ukraine's parliament on Tuesday passed a law to amend the 2022 state budget and allocate UAH 12.7 billion or $350 million to buy gas for the winter heating season.

The money will come from a Canadian loan.

"The parliament gave its general backing to Law No.7681 on allocating UAH 12.7 billion from the Canadian loan to buy gas [...] The deficit is now capped at UAH 1.106 trillion," MP Yaroslav Zheleznyak said on Telegram

According to the text of the law, the Energy Ministry is asked to provide for additional expenses under the new budget program "Acquisition of natural gas for the heating season 2022/2023" in the amount of UAH 12.7 billion, sourcing the cost by increasing state external borrowings in the general fund.

The Ukrainian budget received a Canadian loan of C$450 million or US$350 million on preferential terms in August.

The Economy Ministry estimates Ukraine will need 3 billion-4.9 billion cubic meters of gas to get through the heating season.

Ukraine has put 14-14.5 bcm of a required 19 bcm of gas into storage.