The European Investment Bank (EIB) and World Bank (WB) today signed an agreement under EU guarantee that aims to facilitate the purchase of gas by Ukraine’s national gas company, NJSC Naftogaz.
The agreement was signed today by EIB President Werner Hoyer and World Bank Group President Jim Yong Kim. The EIB will guarantee up to USD 520 million of selected World Bank loans in Ukraine, which will enable the World Bank to guarantee letter of credit facilities for gas purchases by Naftogaz. Today's agreement was facilitated by a counter-guarantee of the European Union granting comprehensive cover to the EIB linked to risks of these selected WB loans in Ukraine.
EIB President Werner Hoyer commented: “European and global institutions are committed to helping Ukraine avert a potentially severe energy crisis as winter approaches.The guarantee agreement we signed today will facilitate Ukraine’s purchase of gas at a critical time. The deal reflects the EIB’s enduring support for Ukraine as part of EU cooperation with the country and the Union’s Eastern Neighbourhood region.”
“The new agreement is part of our broad support to the restructuring of the gas sector in Ukraine and it will contribute to adequate gas supplies for the next three years,” said Jim Yong Kim.“The World Bank Group is committed to continue supporting Ukraine’s ambitious reform program and we are pleased to work jointly with the EIB.”
The new agreement is part of the support for Ukraine by the European Union and international financial institutions, under which the EIB guarantees World Bank investment development projects in Ukraine. The EIB guarantee is structured under the 2014-2020 External Lending Mandate and benefits from the EU comprehensive guarantee.
The European Commission and the EIB Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), organised an event in Rome today to launch the InvestEU programme in Italy and sign its first four Italian operations. With an EU budget guarantee of €26.2 billion, the programme aims to unlock investments of over €372 billion across Europe to support the European Union’s strategic priorities, such as the European Green Deal and the digital transition.
Vice President of the European Investment Bank, Ricardo Mourinho Félix, will lead a high-level delegation, alongside the Ambassador of the European Union to Barbados, the Eastern Caribbean States, the OECS and CARICOM/CARIFORUM, Małgorzata Wasilewska, during his first visit to the Caribbean as Vice President responsible for the region.
The European Investment Bank adopted its first Strategic Approach to Fragility and Conflict. It outlines the bank’s vision and approach to working in fragile and conflict affected contexts, with the aim to enhance EIB’s development impact.