EU lends $186 million to reconstruct Ukraine’s major gas pipeline

The European Investment Bank, the European Union’s lending arm, is providing a $186 million loan to Ukraine’s government for modernising the Ukrainian part of Urengoy – Pomary – Uzhgorod pipeline that delivers Russian gas to the EU.

An agreement was signed on December 1 2014 in Kyiv.

Money will be passed to state-run pipeline operator Ukrtransgaz at a two per cent interest rate, which is in the range of rates of development loans, while market loans for Ukraine come at a much higher interest.

Moreover, European Bank for Reconstruction and Development is expected to issue a $200 million loan for the same purpose.

For the full story, please visit The Kyiv Post.

(Photo: Ukrainian prime minister Arseniy Yatsenyuk, right, and European Investment Bank president Werner Hoyer sign the agreement on December 1 on a $186 million loan for modernising a gas pipeline in Ukraine: