The European Bank for Reconstruction and Development (EBRD) recently made a signifi-cant commitment to Ukraine’s energy sector via a €51.9 million sovereign loan to UGV, the country’s largest natural gas producer.

According to sources, Ukrgasvydobuvannyaee plans to use the funds to increase domestic production, improve efficiency, and reduce the country’s dependence on imports.

As a fully-owned subsidiary of Naftogz, UGV is currently responsible for 75% of domestic natural gas production. With this new funding, they will first finance the procurement of new rigs and increase production at existing sites. Next, the company will introduce new Organic Rankine Cycle waste-heat recovery systems in the UGV site in Lokchi.

It is worth noting that the EMRD has already played a large role in helping reform Ukraine’s natural gas industry. Moreoever, both UGV and Naftogaz have already imple-mented anti-corruption and compliance measures to ensure the protection of the in-vestment. In fact, all contracts financed by EBRD funds will strictly comply with their poli-cies and rules, ensuring equal opportunities to bidders and maintain transparency.

To date, the EBRD has invested €15 billion in various projects throughout Ukraine.