BSTDB Fuels Ukrainian Economy with EUR 25 million to Galnaftogaz
Press Release | 27-Apr-2023
Trade finance facility to ensure uninterrupted access to petroleum products in Ukraine
The Black Sea Trade and Development Bank (BSTDB) provided an up to EUR 25 million short-term revolving trade finance facility to Joint Stock Company Concern Galnaftogaz, an existing BSTDB client in Ukraine. The facility will support the ongoing working capital requirements of Galnaftogaz, ensuring the continuity of their operations during these difficult times.
The proceeds of the BSTDB financing will be used to finance the shipment of light-petroleum goods and services from the EU and the BSTDB's Member Countries, including Bulgaria, Greece, and Romania. The facility will be instrumental in supporting the company's continued revenue generation and mitigating, to the extent possible, the negative impact of the ongoing harsh conditions in the country on their financial position. By providing critical trade finance to Galnaftogaz, the BSTDB is playing a key role in promoting economic development and resilience in Ukraine, supporting job preservation, and improving the quality of life for Ukrainian citizens.
"We are extremenly pleased to support Galnaftogaz, one of our existing clients, in their efforts to continue their operations and develop alternative logistics routes for light-petroleum products to Ukraine. The current situation in Ukraine has created unprecedented challenges for the country's economy, and we understand the importance of ensuring uninterrupted access to essential goods and services for the Ukrainian people. We remain committed to providing our clients with the necessary financial resources to address their business needs, particularly in those challenging times.", said Dr. Serhat Köksal, BSTDB President at the signing of the agreement.
"This is definitely a demonstration of high level of trust from an international financial institution. It indicates IFIs’ confidence in our ability to maintain solid financial stability and liquidity even in wartime conditions,” stated Vasyl Danylyak, CEO of OKKO. “We anticipate that the agreement between OKKO and BSTDB will encourage other external donors to provide loans to Ukrainian businesses that remain resilient amidst the ongoing challenges."
JSC “Concern Galnaftogaz (GNG), is an independent petroleum products distribution company in Ukraine. It operates one of the largest and most efficient gas filling stations networks in the county under the OKKO brand. Besides distribution of light petroleum products, the Company also actively participates in the petroleum wholesale market and provides logistics services to other distribution companies.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s, “Baa1” by Moody’s. For information on BSTDB, visit www.bstdb.org.
