BSTDB Extends US$ 20 Million to Support the Energy Sector in Ukraine
Press Release | 12-Aug-2004
Prime Minister of Ukraine Attends the Signing Ceremony of the Loan Agreement in Thessaloniki, Greece.
The Black Sea Trade & Development Bank (BSTDB) will make available up to US$ 20 million corporate loan to Chornomornaftogaz, a leading company in the Ukrainian energy sector. The BSTDB financing will support the core business activities of Chornomornaftogaz, including developing, commissioning and increasing output of some of its gas fields. The maturity of the loan is 7 years.
The signing of the loan agreement took place on August 12, 2004 in Thessaloniki, Greece in the presence of H.E. Mr. Viktor Yanukovych, Prime Minister of Ukraine during his visit to the Hellenic Republic.
Located in Crimea, Chornomornaftogaz is the only energy company in Ukraine that carries out prospecting and exploratory drilling on the shelf of the Black Sea, as well as the Azov Sea. The company is a major supplier of gas to the regions of Crimea and Southern Ukraine. It builds fixed maritime platforms and underwater pipelines, develops gas and oil deposits, and operates a gas storage facility. It is also the first to start retail trade of oil products through a network of its own petrol stations in Crimea. The Company seeks foreign investments to the Crimean energy sector.
The loan to Chornomornaftogaz is the biggest BSTDB financing in Ukraine so far, with the total BSTDB's approved operations in the country exceeding US$ 100 million.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. With an authorized capital of SDR 1 billion (approx. US$ 1,45 billion), the Bank supports economic development and regional cooperation by providing financing, guarantees, and equity for projects supporting both public and private enterprises in its member countries. Since the commencement of operations in 1999, BSTDB approved projects and trade finance operations totaling US$ 630 million.