State-owned Oschadbank and the UPG gas station chain have signed a cooperation agreement that provides for business loans on special terms for the purchase of motor fuel, according to Yuriy Voychak, director of Oschadbank’s sales department.
“We were the first among all Ukrainian banks to sign a cooperation agreement that allows all UPG customers who need it to purchase fuel using credit funds. Loan terms: 0.01% per annum, for up to 12 months, unsecured. The loan amount is up to 20 million UAH,“ Voychak said during the Energy Finance forum organized by Oschadbank in Kyiv on Wednesday.
”This means that farmers or other UPG clients can apply for financing. We have liquidity, we have sufficient funds, the interest rate is minimal, and the loan is provided without collateral—the procedure is as simple as possible,” the bank representative explained.
He noted that the bank and the network are expecting loan applications from businesses. Voychak clarified that the agreement between the bank and UPG was signed about a month ago.
In a comment to Energoreforma, he noted that the bank is negotiating with other networks to conclude similar agreements.
“WOG and OKKO have started approaching us. We are in negotiations,” said Voychak.
According to him, such an agreement creates a three-way benefit: the client has fuel, the bank has a client to lend to, and the gas station network increases its fuel sales.
UPG network owner Volodymyr Petrenko told Energoreforma that, according to his information, approximately 60 million UAH worth of fuel has already been sold under the loan agreement.
“After the rise in fuel prices, roughly twice as much money is needed to purchase it. Thanks to the loan, we can avoid using working capital for this. Our goal is to give consumers the opportunity to purchase the fuel we import from the U.S. and appreciate its high quality,” said Petrenko.
As reported, UPG (Ukrainian Petrol Group) is a Ukrainian group of companies specializing in the trade of petroleum products. UPG ranks among the top three largest operators in Ukraine by number of stations. The group has its own logistics infrastructure and conducts direct fuel supplies from leading refineries in Europe and the U.S. The founder of UPG is Volodymyr Petrenko.
Earlier, Oschadbank noted in its press release regarding a new business program with UPG—which allows entrepreneurs to purchase fuel for seasonal work or ongoing operations without straining working capital—that its main advantage is a preferential interest rate of 0.01% per annum for the first four months of the loan.
BUSINESS, FUEL, LENDING, OSCHADBANK, UPG
