Arab Today, arab today eu delays loan for ukraine\s gas transport
Last Updated : GMT 15:14:25
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EU delays loan for Ukraine\'s gas transport

Arab Today, arab today

Arab Today, arab today EU delays loan for Ukraine\'s gas transport

Kiev - RIA Novosti

The EU has postponed a decision to grant Ukraine a loan to modernize its gas transport system at least until this fall, the Kommersant-Ukraina daily reported on Tuesday. Ukrainian government representatives have said the modernization will start this summer. Ukraine\'s state-controlled oil and gas company Naftogaz hoped to obtain the $300 million loan from a consortium of lenders including the European Bank of Reconstruction and Development (EBRD), the European Investment Bank and the World Bank. EBRD expert Anton Usov told Kommersant the issue of the loan was put on hold. \"European Commission agencies are currently analyzing Ukraine\'s implementation of the law on reform of the natural gas market. When the study is complete, depending on its results, we will be able to revisit the loan issue,\" he said. The EC\'s main concern is that Naftogaz has retained its monopoly position on the national energy market. The company produces, buys, markets, and transits hydrocarbons, operating at a loss, mostly due to subsidized gas prices. Ukrainian President Viktor Yanukovych said on July 8 that Naftogaz would be broken up into several smaller companies.

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