Ukraine will purchase more than a billion of cubic meters of gas for loan funds.

The procurement will be made from European suppliers, Correspondent.net reports.

In March 2017, Naftogaz intends to procure 1.1 bln cubic meters of gas from European suppliers for 220 euros of the World Bank loan.

As the press office of the company reports, the funds will be attracted in compliance with the loan agreement, which will be concluded between Naftogaz with Citi and Deutsche Bank.

It is reported that the first fifteen letters of credit under the loan agreement with Citi and Deutsche Bank, guaranteed by World Bank, were already allocated to Naftogaz.

“The letters of credit for the total amount of more than 220 mln euros will be used during this March for procurement of natural gas from European suppliers, selected as per tender procedures of the World Bank. The gas procurement is planned for the volume of up to 1.1 bln cubic meters. The suppliers will obtain funds under letters of credit from lenders upon the delivery of gas to Ukraine during April”, as reported in the company’s message.

Naftogaz should repay the loan within 12 months from its disbursement. The total amount of credit facility, guaranteed by the World Bank, is the amount, equivalent to 500 mln dollars.

Naftogaz notes that other funds of the credit facility will be used for gas procurement, taking into the account the current market situation.

As Correspondent.net reported, in October 2016, the World Bank allocated USD 500 mln dollars for gas. Minister of Finance Alexander Danyliuk then said that “now, Ukrainian houses will be fully provided with heating in winter”.

It should be reminded that Russia is concerned about low gas reserves in Ukraine.