By KYIV. Dec 14 (Interfax-Ukraine) –The French government will provide EUR 99.4 million guarantees on loans from the European Bank for Reconstruction and Development (EBRD) to JSC Ukrzaliznytsia in the amount of EUR 150 million and to NJSC Naftogaz in the amount of EUR 300 million.
"France is providing a guarantee worth EUR 49.4 million to support an EBRD loan of EUR 150 million to Ukrzaliznytsia, Ukraine’s railway company… In parallel, France is providing a EUR 50 million guarantee to facilitate an EBRD loan of EUR 300 million to Ukrainian state-owned gas company Naftogaz," the bank said in a press release on Wednesday.
Regarding the loan to Ukrzaliznytsia, the bank noted that this would help finance critical operating expenses to ensure stable rail cargo and passenger transportation, as well as evacuation and humanitarian aid services in the war-torn country.
According to the report, the French guarantee complements another guarantee for Ukrzaliznytsia provided by the European Union through its European Fund for Sustainable Development (EFSD).
It is also noted that the Bank is currently working closely with Ukrzaliznytsia on a new sovereign guaranteed loan of up to EUR 200 million to cover critical capital expenditure needed to improve railway connectivity with the European Union.
As for Naftogaz, it, according to the bank, will purchase gas and guarantee supply to Ukrainian customers, and produce electricity over the winter and beyond.
EBRD President Odile Renaud Basso said that like other G7 countries, France is providing crucial support to our emergency operations in Ukraine.
"It shows how strong our partnership is and how much our priorities are aligned when it comes to backing Ukraine and its people," the head of the EBRD said, whose words are given in the message.
French Minister of Economy and Finance Bruno Le Maire said that Naftogaz and Ukrzaliznytsia’s infrastructures, which are covering the whole Ukrainian territory, constitute a backbone of the Ukrainian economy at wartime.
"I am delighted France can back, through its guarantee, the very important projects developed by the EBRD to address these companies’ urgent liquidity needs," the French minister said.
