Ukraine bolsters energy security with €36.4m EBRD loan
Ukrgasvydobuvannya, a subsidiary of Ukraine's state-owned gas giant, Naftogaz Group, will receive a loan of €36.4 million (£31.4 million) from the European Bank for Reconstruction and Development (EBRD) to modernise its drilling equipment.
According to the company's CEO, Sergiy Koretskyi, the funds will be used to purchase new mobile drilling rigs with lifting capacities of 125 and 180 tonnes, which will significantly enhance the company's ability to conduct complex well reconstructions, particularly at greater depths.
Currently, most of Ukrgasvydobuvannya's equipment can lift only up to 80 tonnes, which is inadequate for many older, deeper wells across the country. The new equipment will help close this gap and strengthen Ukraine's energy sector. "The modernisation of our fleet will allow us to operate on deeper, more technically demanding wells," says Koretskyi. "It will also help accelerate the restoration of production at existing sites, supporting stable gas supplies for Ukraine."
EBRD supports Ukraine's energy security
This is not the first EBRD financing for Naftogaz aimed at improving Ukraine's energy security. As part of preparations for the 2025 heating season, Naftogaz secured €430 million (£371.3 million) from the Bank in April. Additionally, the EBRD loaned Naftogaz €270 million (£233.2 million) to finance emergency gas purchases for the next two heating seasons, as EBRD Vice President Matteo Patrone reported.
It is noteworthy that the £31.4 million loan is the first instance where the EBRD directly funds gas drilling equipment. Increasing domestic gas production has become a priority for the Ukrainian government since Koretskyi took over as CEO of Naftogaz Group in the spring of 2025.
New leadership and ambitious development plans
Sergiy Koretskyi assumed the position of CEO of Naftogaz Group on 14th May. He is the first CEO to initiate the modernisation of the Group's production equipment. Previously, Koretskyi was the CEO of Ukraine's largest private oil company, WOG (Continuum Group). In 2022, he became the head of Ukrnafta and Ukrtatnafta—the largest state-owned oil extraction and production group in Ukraine—after it was nationalised from oligarch Ihor Kolomoisky.
In the autumn of 2024, Koretskyi reported that Ukrnafta achieved profits of 40 billion hryvnias (£790 million) from 2022 to 2024. As CEO, he also organised the first 3D seismic surveys in a decade, replacing outdated equipment. In 2025, Ukrnafta plans to drill about 30 new wells, as well as conduct general overhauls and modernise equipment to intensify production, according to the gas infrastructure company Ukrayinska Energetyka.
