Ukraine seeks U.S. loan for energy sector
Ukraine is negotiating with the United States for a $1.4 billion loan to upgrade energy equipment and increase gas and oil production. The funds could be used to develop gas storage facilities, the Odesa oil terminal, and modernize the energy system. Energy Minister Denys Shmyhal emphasized that U.S. support will help not only sustain the country but also strengthen its energy security.
Ukraine’s Energy Minister Denys Shmyhal said that representatives of Ukraine and the United States are discussing the possibility of securing $1.4 billion in credit assistance from the U.S. International Development Finance Corporation (DFC). The funds are intended for upgrading energy equipment, particularly in the gas production sector, as well as for developing key infrastructure facilities.
“Particular attention was paid to increasing gas and oil production in Ukraine with the involvement of American companies. We also discussed the development of the Vertical Gas Corridor, the advantages of using Ukrainian gas storage facilities, and the expansion of the Odesa oil terminal for transporting oil to Europe,” Shmyhal said.
The minister also reported talks with U.S. companies regarding alternative sources of diesel fuel supply. He expressed hope for continued support from the U.S. administration, noting: “We appreciate the recent decision to allocate an additional $276 million to support Ukraine’s energy sector. This assistance allows us not only to endure, but also to build a new system of energy security.”
The planned U.S. investment could significantly accelerate the modernization of Ukraine’s energy sector and strengthen the country’s energy independence, while also creating new opportunities for cooperation with foreign partners.
It was also reported that Ukrenergo commented on whether power outages would occur on March 25.
President Zelensky said that there is currently no progress toward peace in the negotiations.
