EIB funds Ukrainian gas pipeline reconstruction

Ukraine’s Prime Minister Arseniy Yatsenyuk and President of the European Investment Bank Werner Hoyer have signed a finance contract for the reconstruction, overhaul and re-equipment of the Urengoi-Pomary-Uzhgorod gas pipeline.

Yatsenyuk said that the total amount of the loan from the European Investment Bank for the pipeline’s reconstruction is EUR 150 million. The European Bank for Reconstruction and Development could provide up to $200 million.

According to the Prime Minister of Ukraine, the project is designed for four years with a 19 years repayment period.

The project involves the complete replacement of 120 km of pipes as well as the modernization of two compressor stations.

PJSC Ukrtransgaz will implement this project. Ukrtransgaz’s President Ihor Prokopiv signed a project agreement with the EIB.

Yatsenyuk added that during the reconstruction of gas compressor stations gas pumping expenses via the Ukrainian GTS on this section would be decreased by 20%.

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Press Release; Image: kmu.gov.ua