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EU Funnels Fresh Money to Ukraine for Naftogaz
Published by Global Banking & Finance Review®
Posted on November 13, 2025
2 min readLast updated: January 21, 2026
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Published by Global Banking & Finance Review®
Posted on November 13, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleThe EU and development banks are funding Naftogaz to secure Ukraine's gas supply amid ongoing conflict, with additional grants for water and housing.
WARSAW (Reuters) -Europe's top development banks and Ukrainian energy firm Naftogaz signed a deal on Thursday to provide hundreds of millions of euros to secure Ukraine's natural gas supply amid the ongoing attacks on its infrastructure by Russia.
Ukrainian gas imports have risen as the war with Russia batters the country's energy system. Norway announced earlier this year that it would provide financing for Ukrainian purchases of its natural gas.
In a statement the EIB, the EU's lending arm, said an EU grant would provide 127 million euros ($127 million) of additional funding to Naftogaz on top of a 300 billion euro loan it outlined last month.
A further 25 million euro grant is to be provided to improve Ukraine's drinking water and wastewater treatment systems, and another 50 million euros has been extended to support an EIB-approved social housing reconstruction loan.
Ukraine's energy sector has come into sharp focus in recent days amid a probe into an alleged $100 million corruption scheme that has already seen moves by the government to dismiss two of the country's cabinet ministers.
The graft scandal centers around an alleged plot to control procurement at nuclear agency Energoatom and other state enterprises. No other firms have been identified in connection with the corruption scandal.
($1 = 0.8575 euros)
(Reporting by Barbara Erling; Writing by Marc Jones: Editing by Jan Harvey)
Naftogaz is a Ukrainian state-owned energy company responsible for the extraction, transportation, and distribution of natural gas and oil in Ukraine.
An EU grant is a financial aid provided by the European Union to support projects that align with its policies and objectives, often requiring no repayment.
The European Investment Bank (EIB) is the lending arm of the European Union, providing financing for projects that promote EU policy objectives, including infrastructure and development.
A natural gas supply refers to the provision and distribution of natural gas, a fossil fuel used for heating, electricity generation, and as a raw material in various industries.
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