Ukraine seeks $4 billion loan from European banks to pay for Russian gas imports

Ukraine seeks $4B gas loan from Europe

KIEV, Ukraine — Ukraine is seeking a $4 billion loan from European banks to pay for natural gas imports from Russia this year, Prime Minister Yulia Tymoshenko said Tuesday.

Speaking in Luxembourg after a meeting with European Union officials, Tymoshenko said the loan would guarantee the transit of Russian gas supplies to European consumers through Ukraine, according to her Web site.

Tymoshenko said her government was in talks with the European Bank for Reconstruction and Development about the loan but will also hold talks with other financial institutions.

A dispute in January between Russia and Ukraine over natural gas prices and debts resulted in Moscow cutting off supplies to Ukraine, thus leaving millions of Europeans without gas for heating.

Ukraine must pump some 30 billion cubic meters of gas into its underground storage facilities over spring and summer months to be used during the winter heating season, according to the state company Naftogaz. The company says it has 16 billion cubic meters of gas left to pump this year in addition to monthly gas purchases used mostly for industrial needs.

Russia has recently warned again that if Ukraine does not pay on time and in full, that could lead to new disruptions in gas supplies to Europe.

Tymoshenko said she has asked Russia for help in funding the gas imports. Russian officials have said they are ready to lend Ukraine money, but only jointly with the European Union.

There was no immediate comment from European Union officials to Tymoshenko’s comments. Previously, EU officials said they would discuss the issue at a summit later this month.