AVELLUM advises EBRD on record financing to Naftogaz of Ukraine

AVELLUM acted as the Ukrainian legal counsel to the European Bank for Reconstruction and Development (“EBRD”) in connection with the EUR500 million loan to Joint Stock Company “National Joint Stock Company “Naftogaz of Ukraine” (“Naftogaz”). This facility represents the largest single loan ever provided by EBRD in Ukraine.

Naftogaz will use the loan proceeds to procure natural gas from more than 30 pre-qualified suppliers through a competitive process. This financing will help support Ukraine’s energy security ahead of the heating season and continued delivery of heat and power to households across the country.

For the first time, the loan is provided under a 90 per cent. guarantee from the European Union, marking a landmark use of the Hi-Bar Programme. This instrument, part of the broader Ukraine Investment Framework under the Ukraine Facility, is designed to mobilise investment for Ukraine’s recovery by mitigating risks for financial institutions. The guarantee has enabled the transaction to proceed without requiring a sovereign guarantee from Ukraine.

AVELLUM team was led by senior partner Glib Bondar with significant support from managing associates Mariana Pylypenko and Yurii Krasnoliudskyi and associates Andrii Kroshko, Elina Kryhan and Ostap Kushnir. Managing associate Yuliia Pidlisna provided support on energy gas procurement matters of the transaction.