The European Commission has signed a guarantee agreement with the European Bank for Reconstruction and Development (EBRD) to facilitate an unprecedented €500 million loan for Ukraine’s energy security.
The financing will enable state-owned Naftogaz of Ukraine (NAK) to fund emergency gas purchases ahead of winter, following severe Russian attacks on the country’s gas production and processing facilities. The Commission will guarantee 90% of the loan under the amended HI-BAR programme, financed through the EU’s Ukraine Investment Framework.
Russian strikes in the first half of 2025 caused significant production losses, creating pressure on Ukraine’s reserves. The new package aims to replenish depleted stocks, ensuring critical infrastructure and households have access to energy during the cold season. Naftogaz will source the gas through competitive procurement.
The two-year loan’s repayment will allow the EBRD and the Commission to redirect the guarantee towards capital investment projects, including renewable energy developments.
The Ukraine Investment Framework forms part of the EU’s €50 billion Ukraine Facility, which is designed to attract public and private investment for recovery and reconstruction. The framework has €9.3 billion in financial instruments — €7.8 billion in loan guarantees and €1.5 billion in blended finance — with a goal of mobilising €40 billion in investments for rebuilding and modernisation.
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