PJSC Ukrnafta will raise UAH 4 billion in loans from Ukrgasbank to drill new wells and build and commission gas piston units, the company’s press service said on Friday.
“The borrowed funds will be used to finance drilling and production stimulation programs and the construction of modern gas piston stations,” said Sergiy Koretsky, Ukrnafta’s director.
As reported, Ukrnafta has announced 16 tenders for the purchase of gas reciprocating power plants with a total capacity of 63.59 MW-76.4 MW. These are plants with a capacity of 1-1.3 MW (two sets), 1.6-2.1 MW (one), 1.95-2.5 MW (two), 2.4-3.1 MW (three), 2.94-3.7 MW (one), 3.9-4.5 MW (three), 4.4-5.2 MW (one), 5.85-6.8 MW (one), 12-14.1 MW (two). The start of the auctions has been extended by two weeks to September 9-10, 2024.
“In 2023, Ukrnafta increased oil and condensate production by 3% (by 39.9 thousand tons) compared to 2022, to 1.4 million tons. Last year, Ukrnafta produced 1.097 bcm of natural and associated petroleum gas, which is 5.8% (60.4 mcm) more than in 2022.
“Ukrnafta is the largest oil producer in Ukraine and the operator of the national network of filling stations. In March 2024, the company took over management of Glusco’s assets and operates 545 filling stations – 460 owned and 85 managed.
The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTA cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. In November 2022, the Supreme Commander-in-Chief’s Office of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company, which belonged to private owners and is currently managed by the Ministry of Defense.
In 2024, state-owned Ukrgasbank (Kyiv) provided UAH 40 million in loans to farmers working in high-risk military areas, up from UAH 120 million a year earlier, said Tetyana Korinenko, director of the Small and Medium Business Department.
“Of course, a client who wants to get a loan must meet the bank’s requirements. A very negative factor for a significant share of clients who would like to receive financing is (requirement – IF-U) to be located in a safe territory. We also have requirements that the client must operate in an area no more than 50 km from the front line. But we also have cases using guarantee instruments provided by the state in the form of a guarantee from the Cabinet of Ministers and the Partial Guarantee Fund. We have already come closer to 22 km to the front line,” she said at Grain Ukraine in Kyiv on Friday.
According to Kornienko, Ukrgasbank has four clients from the agricultural sector in Kherson region who received loans to operate within a 30-kilometer zone from the military operations. In their case, state guarantee instruments cover 50-80% of the loan issued by the bank.
“This is a cool tool that allows us to help clients from the agricultural sector who work as close as possible to the area of active military operations,” the expert said.
Kornienko clarified that in 2024, Ukrgasbank lent about UAH 40 million to farmers working in the high military risk zone. A year earlier, this figure was 120 million.
“Of course, this is not much compared to our annual UAH 5 billion loans to the agricultural sector. But with each such client, we understand that we are giving the market an impetus, showing that it is possible to work in this way. It is also possible to have credit relations with such clients. And this risk is acceptable thanks to government instruments,” summarized the Ukrgasbank representative.
JSB “Ukrgasbank” was established in 1993. The state, represented by the Ministry of Finance, owns 94.9409% of the financial institution’s shares.
The European Bank for Reconstruction and Development (EBRD) intends to assume up to 50% of the risk on newly issued loans to state-owned Ukrgasbank (Kyiv) totaling the equivalent of EUR50 million.
According to the EBRD on Monday, its board of directors planned to consider this project at a meeting on February 9, but has not yet made a final decision.
It is noted that the guarantee financing is planned to be provided in two equal tranches, with the second tranche not yet agreed, and the total amount of EBRD financing is EUR 12.5 million.
The project also includes a sub-limit of up to EUR 10 million, or 20% of the covered portfolio, to finance long-term investments by micro, small and medium-sized enterprises (MSMEs) to modernize their technologies and equipment in line with EU standards, including investments in green technologies (70% of the sub-limit), and to increase their competitiveness.
According to the EBRD, the facility will be mainly used to support lending to Ukrainian private companies operating in primary and secondary agriculture, as well as other critical sectors such as food processing, retail, and logistics.
According to the National Bank of Ukraine, as of December 1, 2023, Ukrgasbank ranked 5th in terms of assets (UAH 180.85 billion) among 63 banks operating in the country.
JSB “UKRGASBANK” sold the building of the Institute in Kyiv on Kurenivskyi Lane via OpenMarket electronic auction (SE “SETAM” of the Ministry of Justice of Ukraine). The sale price amounted to UAH 64,944,207.
The building of the Institute is located in the Obolon district of Kyiv, close to a park, post offices, public transport stops, the Pochayna metro station, shops, cafes and much more.
This is the 24th lot sold by the bank at the OpenMarket auction since the beginning of martial law, and the total amount of sales for this period was over UAH 142 million.
“Despite the difficult economic situation caused by Russia’s full-scale invasion of Ukraine, the real estate market is active in the segment of banking assets. Due to JSB “UKRGASBANK” flexible approach to real estate sales, as well as taking into account the “Dutch auctions” system introduced in 2021, the demand for JSB “UKRGASBANK” assets is at a consistently high level. JSB “UKRGASBANK” expresses its gratitude to SE “SETAM” for assistance in organizing sales, active support and effective cooperation, as the success in selling the Bank’s property directly depends on the quality of the auction organizer’s work,” said Daria Musych, Head of the Debt Settlement Department of Ukrgasbank.
“I would like to thank Ukrgasbank for their trust in our electronic auction. The bank is our constant and long-standing partner. Since the beginning of our cooperation, we have already sold the bank’s assets for over UAH 2.1 billion. The bank is one of our three most successful sellers,” said Oleksandr Mamro, CEO of SE SETAM.
The auction is available at the link: setam.net.ua/auction/539330
The OpenMarket auction (SE SETAM of the Ministry of Justice of Ukraine) is a simple and effective means of selling and purchasing property via the Internet. The online auction has been operating throughout Ukraine since 2014. The total amount of sales since its launch is UAH 21.6 billion.
Daria Musych, OPENMARKET, UKRGASBANK, Олександр Мамро, СЕТАМ
Profit of state-owned Ukrgasbank (Kiev) for January-November 2023 amounted to UAH 4.08 billion, while the same period last year the state bank ended with a net loss of UAH 3.75 billion, the financial institution reported on Tuesday.
It is specified that the operating profit of the bank for January-November this year before deductions to reserves and taxation amounted to UAH 4.3 billion.
According to the release, Ukrgasbank’s assets increased by UAH 35 billion since the beginning of the year and reached UAH 166.7 billion by the end of November 2023, while the portfolio of attracted customer funds increased by UAH 29.9 billion since January and amounted to UAH 142.7 billion.
It is specified that the most significant increase in the portfolio of funds of corporate business – by UAH 26.2 billion, up to UAH 85.5 billion, in particular, from small and medium-sized enterprises (SME) – by UAH 4 billion, up to UAH 25.4 billion.
The bank added that the portfolio of retail customers’ term funds in hryvnia amounted to UAH 9.8 billion at the end of November, having increased by UAH 3.5 billion since the beginning of the year.
According to the National Bank of Ukraine, as of October 1, 2023, Ukrgasbank ranked 5th in terms of total assets (UAH 166.44 billion) among 63 banks operating in the country.
The profit of the state-owned Ukrgasbank (Kyiv) in January-November 2023 amounted to UAH 4.08 billion, while the state-owned bank ended the same period last year with a net loss of UAH 3.75 billion, the financial institution reported on Tuesday.
It was specified that the bank’s operating profit for January-November this year before deductions to reserves and taxation amounted to UAH 4.3 billion.
According to the release, Ukrgasbank’s assets have increased by UAH 35 billion since the beginning of the year and reached UAH 166.7 billion as of November 2023, while the portfolio of attracted customer funds has increased by UAH 29.9 billion since January and amounted to UAH 142.7 billion.
It was specified that the portfolio of corporate business funds increased the most significantly – by UAH 26.2 billion to UAH 85.5 billion, in particular, from small and medium-sized businesses (SMEs) – by UAH 4 billion to UAH 25.4 billion.
The bank added that the portfolio of term deposits of retail business clients in hryvnia amounted to UAH 9.8 billion at the end of November, having increased by UAH 3.5 billion since the beginning of the year.
According to the National Bank of Ukraine, as of October 1, 2023, Ukrgasbank ranked 5th in terms of total assets (UAH 166.44 billion) among 63 banks in the country.
