Today, the European Commission has signed a guarantee agreement with EBRD to enable an unprecedented EUR 500 million loan for Ukraine’s energy security. The financing will allow the state-owned company Naftogaz of Ukraine (NAK) to finance emergency gas purchases. The Commission will guarantee 90 % of the loan within the amended HI-BAR programme financed under the EU’s Ukraine Investment Framework.

The financing follows major Russian attacks on the company’s upstream gas production and processing facilities. These attacks on civilian infrastructure occurring at increased intensity in the first half of 2025 have resulted in significant production losses and a stress situation on the reserves of the country ahead of next winter. Replenishing the depleted gas reserves of Ukraine with the help of this financing package will be key to allowing the country’s critical infrastructure and population to access energy sources during the winter. Naftogaz will source natural gas competitively.

Upon reimbursement of the 2-year loan, the EBRD and the Commission will reallocate the available guarantee coverage to capital investment projects, enabling long-term private and public investments, for instance in the renewables sector.