Galnaftogaz Corporate Loan



Project number:


Business sector:

Natural resources

Notice type:


Environmental category:


Approval date:

20 Nov 2007



PSD disclosed:

10 Oct 2007

Project Description

The proposed project is to Fund further development and growth of the Galnaftogaz “OKKO” petrol station chain in Ukraine. The facility builds on successful EBRD and IFC parallel project finance by providing a larger longer term syndicated corporate loan to permit future growth under the Company’s 2006-2016 development plan.

Transition Impact

The primary sources of transition impact of this transaction are expected to be:

1. Support to private sector development and greater competition in the project sector. The proposed facility will allow the company to expand its territorial coverage outside Western Ukraine, where it started its operations, thus creating a large, private oil retailer able to compete at a national level with the networks of state-owned or refinery-tied distribution outlets.

2. Setting standards of corporate governance and environmental conduct The Project will support GNG in completing the implementation of the Corporate Governance Plan developed by EBRD/IFC, including the switch to full quarterly IFRS reporting in early 2008 (with highlights under IFRS already to be provided by the end of 2007) and the creation of an Internal Audit Committee.

The Client

OJSC GALNAFTOGAZ (“GNG” or “the Company) an independent Ukrainian owner operator of petrol filling stations operating under the brand “OKKO”.

EBRD Finance

USD 30 Million Senior “A” Loan
USD 50 Million Senior Syndicated “B” Loan
USD 20 Million Subordinated Mezzanine “C” Loan

Project Cost

USD 250 Million.

Environmental Impact

Environmental investigations including an independent environmental, health and safety audit and a site visit by the Bank’s Environmental Specialist confirmed that, as a result of control, preventive and mitigation measures applied, the environmental, health and safety issues are unlikely to present significant impacts. The Bank's due diligence confirmed that the Company adheres to high international standards and the proposed transaction will result in further modernisation of the filling stations in line with international good practice, including compliance with the relevant EU Directives relating to fuel quality, vapour recovery, recycling and energy efficiency.

The stations currently sell high quality and unleaded fuels which are not common in the market particularly in Western Ukraine. There are a number of improvements, which when implemented would further increase EHS performance. These are included in an extensive environmental action plan (EAP) which has already been developed. According to IFC the project also meets all applicable World Bank/IFC environment and social policies on completion of the EAP.

Technical Cooperation


Company Contact

Yurij Kuchabsky, General Director
Nazar Kupybida, CFO
Concern Galnaftogaz OJSC
72 Turgenev Str.
Lviv 79015 Ukraine


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

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Text of the PIP

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