The European Commission signed a guarantee agreement with the European Bank for Reconstruction and Development (EBRD) to mobilise €500 million for Ukraine's energy sector.
The loan, which would be financed under the EU's Ukraine Investment Framework, would allow Ukraine's state-owned Naftogaz to finance emergency gas purchases.
The agreement aims to restore energy sources ahead of the autumn and winter months. Russia has recently intensified its attacks on energy infrastructure, causing storage reserves to drop to their lowest level in more than a decade, local media reported.
"These attacks on civilian infrastructure occurring at increased intensity in the first half of 2025 have resulted in significant production losses and a stress situation on the reserves of the country ahead of the next winters," the European Commission wrote in a statement on Wednesday.
The energy company confirmed it would source natural gas competitively from over 30 prequalified suppliers and that its contracts would meet European standards.
"This is a clear signal that our partners understand the scale of the threat posed by Russia. Energy security today and energy independence in the future are our strategic priorities," Sergii Koretskyi, Chief Executive Officer of Naftogaz said.
Ukraine's Prime Minister Yulia Svyrydenko called it a "record-breaking agreement for Ukraine" in a post on Telegram, adding that it is the EBRD's largest project in the country.
"For the first time, such a loan is provided under EU guarantee, without Ukraine's state guarantee," Svyrydenko said.
"This will allow Ukraine to better prepare for the heating season and provide Ukrainian homes with heat and light even on the most difficult days of winter," she added.
