Cabinet approves loan of up to EUR 45.75 million for Ukrnafta gas power plants
The Cabinet of Ministers approved the terms of a loan from Deutsche Bank of up to EUR 45.75 million to buy equipment for Ukrnafta's gas-piston power plants. The plants, with a combined capacity of about 60 MW, are planned for four of the company's sites.
The state will be the borrower: the loan will be repaid from Ukraine's budget, while Finland will pay the interest. At the same time, the loan agreement may provide for certain cases in which Ukraine also has to pay interest. A guarantee of the obligations to the bank will be provided by Finland's export credit agency Finnvera.
The funds will cover up to 85% of the value of the equipment purchase and supply contracts, and part of the loan will go towards paying for the Finnvera guarantee.
Repayment terms
The interest rate is floating: six-month EURIBOR plus 1.3% up to and including the first repayment date. For subsequent interest periods, the margin over EURIBOR will fall to 0.64%. The loan must be repaid in full within 9.5 years of the first repayment date. Before payments begin there is a grace period lasting until the earlier of two dates: 18 months after signing the loan agreement or six months after the projects are completed.
Background
In May 2026, Ukrnafta and Finland's Wärtsilä signed a framework agreement on the supply of equipment for gas-piston units. The company said the purchase would be financed under the Finnish-Ukrainian Investment Fund programme with a Finnvera guarantee.
According to Ukrnafta's plan, the units will provide backup power for the company's production divisions, while surplus electricity will be supplied to Ukraine's power system.