**Ukraine’s Naftogaz to Receive European Bank Loan for Modernization**
The Ukrainian state energy company, Naftogaz, is set to receive a significant loan from the European Bank for Reconstruction and Development (EBRD) to modernize its drilling equipment. The 36.4 million euro loan will be used to purchase new mobile drilling rigs with lifting capacities of 125 and 180 metric tons.
**A Much-Needed Boost**
Naftogaz is Ukraine’s leading natural gas producer, accounting for the lion’s share of the country’s gas production. However, its production facilities were severely damaged in a series of Russian missile strikes earlier this year, reducing production by as much as 40%. The loan from the EBRD will enable Naftogaz to upgrade its drilling equipment and restore production at existing sites.
**A Strategic Move**
The CEO of Naftogaz, Serhiy Koretskyi, emphasized that upgrading their fleet will not only allow them to operate on deeper and more technically challenging wells but also accelerate the restoration of production at existing sites. This is a strategic move to ensure stable gas supply for Ukraine, which has been struggling with reduced production due to Russian attacks.
**Ukraine’s Gas Crisis**
The country has had to ramp up gas withdrawals from storage and increase imports this winter and spring after Russian missile attacks damaged production facilities in the east of the country. Naftogaz is currently in talks with the government and international financial institutions to raise 1 billion euros to purchase over 2 billion cubic meters of gas for the 2025/26 heating season.
**A Big Challenge Ahead**
According to Serhiy Makogon, the former head of the Ukrainian gas transit operator, Ukraine needs to import up to 6.3 billion cubic meters of gas for the 2025/26 winter season as reserves have fallen to a record low. This is a big challenge ahead for the country, and it will require significant investment to address.
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