Initial Terms of $500Mln Loan to Ukraine Permit Russian Gas Purchases

The preliminary terms of the World Bank’s (WB) anticipated $500-million loan to Ukraine envisions natural gas deliveries from both the European Union and Russia, the head of Ukraine’s state-run Naftogaz energy company said Monday.

KIEV (Sputnik) – Kobolev warned that working-level decisions are subject to approval from the WB’s Board of Directors, who are set to meet at an unspecified time in the future.

"The Bank team expects us to include the eastern border in the list of delivery points in advance. Therefore, we will have the ability to pump gas from any direction, if the supplier agrees to the terms of the Bank," Andriy Kobolev told Ukraine's news agency LigaBiznesInform.

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The Naftogaz CEO also expressed doubt in the company's ability to solve "a lot of technical problems" in order to secure the $500 million from the WB this year.

Last month, the European Investment Bank (EIB) signed a deal with the WB guaranteeing up to $520 million of a WB loan to Ukraine to facilitate gas purchases.

Late in September, Ukrainian Prime Minister Arseniy Yatsenyuk assessed his country’s needs during this year’s heating season at $1.3 billion.

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