Norway allocates nearly $100 million to Ukraine for gas purchases

The Norwegian government has approved nearly $100 million in funding to help Ukraine purchase imported natural gas, the press service of Ukraine’s Ministry of Energy confirmed.

According to Ukrainian media, Ukrainian Energy Minister Svetlana Grinchuk welcomed the decision, stressing that Norway’s “timely and systematic assistance is extremely important for ensuring Ukraine’s energy security. This demonstrates the unwavering solidarity of our international partners and their willingness to help implement energy projects and strengthen the independence of the Ukrainian energy sector.”

The funds will be provided to Naftogaz of Ukraine, which will use them to build up sufficient gas reserves in preparation for the heating season.

The Ministry of Energy expressed gratitude to the Norwegian government for its contribution to strengthening Ukraine’s energy sustainability and also thanked the Ukrainian Embassy in Norway for its role in supporting the country’s energy security.

Ukraine began stockpiling gas earlier this year amid reports that it had lost 40 per cent of its domestic production capacity as a result of regular Russian attacks on energy infrastructure.

In April, the European Bank for Reconstruction and Development (EBRD) and Norway jointly announced €410 million in funding for Ukraine to purchase gas ahead of winter.

In addition, Naftogaz and the EBRD signed a record €500 million agreement, marking the first time such a loan has been granted under an EU guarantee without requiring a Ukrainian state guarantee.

Naftogaz has stated that Ukraine must purchase and inject around 6 billion cubic meters of gas into underground storage facilities before the onset of winter. By June, the company had already secured financing and agreements to purchase 4.5 billion cubic meters.

By Tamilla Hasanova