Ukraine's Naftogaz secures $118 million lifeline from Privatbank for gas purchases
Ukraine's largest bank, the state-owned Privatbank, extended a Hr 5 billion loan ($118.6 million) to Naftogaz, Ukraine’s state-run oil and gas giant, for emergency natural gas purchases, Naftogaz wrote in a press release on Dec. 9.
The company has said it would need 4.4 billion cubic meters of gas imports this winter, costing around 1.9 billion euros ($2.2 billion). Heavy Russian attacks in October wiped out over half the country’s gas production facilities, pushing Ukraine to the brink of an unprecedented crisis.
"These funds help us purchase imported gas on time and strengthen the country’s energy resilience," Naftogaz CEO Serhii Koretskyi said.
The announcement is the second loan from Privatbank this year. In July, the bank provided Hr 4.7 billion ($111.5 million) to shore up natural gas reserves. Gas is the country’s primary source of heating.
The announcement comes as Ukrainians battle lengthy power outages as relentless Russian attacks batter energy facilities. One of the recent Russian strikes shut down Naftogaz’s combined heat and power plant in Kherson, southern Ukraine, and injured energy workers on Dec. 3.
"The Kherson plant is an entirely civilian facility. Its only purpose is to provide heating to city residents. Despite this, the Russians systematically attack the enterprise. This is terrorism," Koretskyi said in a press statement.
As Ukraine looks to partners for support, it has ramped up imports of American liquefied natural gas (LNG), which is fed through Ukraine’s pipelines from Poland. Last month, Naftogaz signed a deal with Polish firm Orlen, securing 300 million cubic meters of American LNG in three shipments for the first quarter of 2026.
Following the devastating attacks in October, banks have swooped in to bolster Ukraine’s emergency gas needs. Days after the strikes, the European Bank for Reconstruction and Development (EBRD) swiftly announced a 500 million euro ($580 million) package to Naftogaz, and state-owned Oschadbank said it would loan Hr 3 billion ($71.2 million) to the company.
