Financed ProjectsGalnaftogaz II

Identification Code:

OP/07/0640

Total Operation Cost:

0

Maturity:

96 months

Operation Status:

Description and Purpose of the Operation:

Financing of Galnaftogaz expansion program to further develop its network to cover all regions of Ukraine

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

Loans

Sector:

Consumer Discretionary

Domain:

Private

Borrower/Client:

Galnaftogaz is a private petroleum retail company established in Ukraine in 2001. Its core business is construction and operation of its own network of 183 gas filling stations (GFS) mainly in the regions of Kyiv, Odessa and Crimea, with plans to develop it to cover other regions of the country. The Company also operates its gas storage tanks and transportation vehicles. In 2004 BSTDB extended its first loan of USD 23 million to Galnaftogaz.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

The BSTDB financing supports the consolidation of a local supplier position in the local market.The operation may potentially result in a regional cooperation effect from purchasing oil products and transportation vehicles from Russia and serving the regional transportation flows connecting Black sea regions. It also has an opportunity to create new employment and generate taxes.

Environmental Classification and Impact (summary):

Galnaftogaz proved to have an outstanding Environment, Health and Safety (EH&S) performance, with relevant control, preventive and mitigation measures complying with national requirements. The Company implements the Environmental Action Plan elaborated jointly with BSTDB to further reduce the EH&S impact resulting from GFSs. Regular monitoring and site inspections are carried out by national Environmental Inspectorate and other relevant authorities.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org