KYIV: Ukraine's largest gas production company, UkrGasVydobuvannya, secured a 51.9 million-euro loan from the European Bank for Reconstruction and Development to finance its modernization, Ukraine's Finance Ministry said on Friday.
It said the money, which was borrowed under the state guarantees, would come in two parts: 36.4 million euros for nine years and 15.45 million euros for 15 years, according to documents signed in Kyiv.
UkrGasVydobuvannya, a subsidiary of the state-owned energy company Naftogaz, plans to purchase modern equipment to repair wells at a depth of more than 5 kilometres.
"The project we are launching today provides, at the same time, funds that will intensify natural gas production and help increase Ukraine's energy independence," Ukrainian Finance Minister Serhiy Marchenko was quoted as saying.
Ukraine plans to increase its gas production in order to reduce imports that consist of over 40% of its consumption.