Naftogaz of Ukraine has increased its natural gas production this year and plans to rely solely on Ukrainian gas for the winter. Additionally, there is a reserve of foreign gas purchased with funds from the European Bank for Reconstruction and Development (EBRD), according to the company’s Chairman of the Board, Oleksii Chernyshov, during the 20th annual Yalta European Strategy (YES) meeting organized by the Victor Pinchuk Foundation in Kyiv.
“We have had an Emergency Credit Line with the EBRD for several years. We use this Emergency Credit Line annually to build up a reserve for potential scenarios, which we also plan for. This reserve effectively remains in the country’s customs warehouse and is not imported into the country,” he told journalists.
Chernyshov noted that this is a standard technological procedure for the company, applied every year, including last year.
“Last year, we had an EBRD credit line of EUR 300 million; this year it is EUR 200 million, even less... All the needs of Ukrainian consumers are met with Ukrainian gas,” the Chairman emphasized.
Commenting on the use of Ukrainian gas storage facilities by foreign gas traders, Chernyshov observed that this year’s activity is low.
“We would have liked more; sometimes traders even take something. There are well-known challenges, so we are now primarily relying on our own (gas). And that’s what we planned,” he noted.
The Chairman clarified that the current dynamics are “low negative,” but final assessments will be made at the end of the year.
