Naftogaz Secures €300 Million EIB Loan to Buy Winter Gas, Tightens Non-Russian Supply Plan

Ukraine’s Naftogaz taps EIB for €300m to bolster winter gas supplies

Why this funding matters now

Ukraine’s state energy company Naftogaz secured a €300 million loan from the European Investment Bank (EIB) to purchase natural gas ahead of the 2025/26 heating season, reinforcing Ukraine energy security after wartime attacks slashed domestic production. Management said the loan will fund about 0.6 bcm of winter gas purchases, contributing to a minimum requirement of roughly 13.2 bcm for the season that begins in mid-October. The company added these volumes will be non-Russian gas imports.

Storage, sourcing and the non-Russian mix

Naftogaz said it has already reached 95–98% of its storage target and resumed imports earlier in 2025 after drone and missile strikes cut output by around 40%. The firm has diversified supply, including increased receipts of U.S. LNG, which now account for about 8% of total imports. The European Investment Bank loan is intended to top up storage and smooth procurement across the autumn shoulder period.

How the EIB loan fits with wider financing

The EIB facility comes alongside broader European support for Ukraine energy security. In August, the European Commission agreed to guarantee up to €500 million in EBRD lending for emergency winter gas purchases. Earlier in 2025, Naftogaz also arranged smaller-scale EBRD funding for drilling equipment to repair production capacity damaged by attacks. Together, these channels help bridge the import bill while upstream assets are restored.

Demand, targets and import needs

Policy makers have signaled that Ukraine might need up to $1 billion of gas to meet storage goals after the spring drawdown and supply disruptions. The €300 million loan reduces that gap and gives the buyer flexibility to time cargoes and pipeline nominations as temperatures fall. Officials maintain that winter gas purchases will avoid Russian molecules, relying instead on regional hubs and LNG regas routes.

Market impact: flows, pricing and risk

For regional gas markets, Ukraine’s financing clarity can stabilize near-dated hub demand, supporting winter strip liquidity without the scramble that characterized earlier wartime seasons. Additional LNG-linked volumes may tighten Atlantic Basin balances on cold snaps, but the modest size (≈0.6 bcm) argues against a material price shock absent severe weather. The transparent non-Russian gas imports policy also limits sanctions-related friction in cross-border settlement and transport.

Operational and policy considerations

• Procurement cadence. With storage close to plan, Naftogaz can stage purchases to hedge weather risk and price volatility while keeping grid pressure manageable.
• Infrastructure resilience. Damage to fields and midstream assets remains a swing factor; the EBRD-backed drilling upgrades aim to gradually restore domestic production in 2026+.
• Governance and reinvestment. As part of the EIB arrangement, Naftogaz committed to reinvest an equivalent amount in renewables and decarbonization projects, an important signal to European partners on long-run alignment.

Geopolitical backdrop and EU funding debates

The loan lands as the EU explores using cash proceeds from frozen Russian assets to extend longer-dated support to Kyiv through a so-called “reparations loan.” While that instrument is separate from Naftogaz’s near-term procurement, it underscores an evolving European financing architecture designed to backstop Ukraine’s fiscal and energy needs through the decade.

What to watch next

• Weather and draw patterns: Colder-than-normal starts accelerate withdrawals and bring forward the next import tranche.
• Transit and regas capacity: Slot availability and regional interconnector flows will determine how quickly incremental LNG or hub gas can be injected.
• Upstream recovery: Progress on replacing damaged rigs and well services will set the pace for Ukraine energy security beyond 2025.

Investor read-through

For European energy names, a funded Ukrainian buyer adds a reliable offtaker for shoulder-season cargoes and hub volumes, smoothing cash flows at the margin. For multilaterals and donors, the deal is a proof point that targeted liquidity, paired with governance and reinvestment pledges, can mitigate winter risk without distorting regional pricing. The explicit emphasis on non-Russian gas imports reduces compliance uncertainty for traders, insurers and carriers.