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Russia-Ukraine gas dispute

Ukraine signs agreement on allocation of $300 mln for gas purchases with EBRD

The signing ceremony took place in Berlin in the presence of Germany’s Chancellor Angela Merkel and Ukraine’s Prime Minister Arseniy Yatsenyuk

© EPA/ROMAN PILIPEY

BERLIN, October 23. /TASS/. Ukraine’s Finance Minister Natalie Jaresko and first Vice President of the European Bank for Reconstruction and Development (EBRD) Phil Bennet have signed an agreement on allocation of $300 mln to Ukraine for the purchase of gas supplied to the country’s Western border.

The signing ceremony took place in Berlin in the presence of Germany’s Chancellor Angela Merkel and Ukraine’s Prime Minister Arseniy Yatsenyuk.

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Ahead of the signing Minister of Energy and Coal Industry of Ukraine Vladimir Demchishin said that the allocated funds will be spent primarily on buying gas from the EU countries (the so-called reverse exports).

At the same time he spoke against that agreement, as it provides for the signing of the Plan for Corporate Governance of Naftogaz. This may lead to the situation when the assets of such companies as Ukrtransgaz, Ukrgasdobycha, Ukrtransnafta and Ukrnafta will be privatized and concentrated in the hands of one company, he said.

The EBRD said that the loan will contribute to strengthening Ukraine's energy security through diversification of suppliers and routes of gas supply.

The bank also said that the loan is linked to a joint project with Naftogaz on the upgrade and repair of the Western part of the Urengoy-Pomary-Uzhgorod gas pipeline.

Currently, Ukraine imports gas from Europe in small amounts - about 10 million cubic meters per day, against 110-115 million cubic meters gas from Russia.

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European Bank for Reconstruction and Development Russia-Ukraine Gas Dispute

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