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Naftogaz Eurobond



Project number:


Business sector:

Natural resources

Notice type:


Environmental category:


Approval date:

12 Jul 2019



PSD disclosed:

31 Jul 2019

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Investment of  120 million in € 600 million 5 year senior fixed rate coupon unsecured Eurobond issued alongside US$ 335 million 3 year Eurobond by Kondor Finance plc and rated by Fitch in favour of NJSC "Naftogaz of Ukraine" (the "Company", or "NAK").

Project Objectives

The Eurobond proceeds are issued for general corporate purposes including the financing of gas purchases. The Bank's financing will be used exclusively for gas purchases.

The transaction will contribute to Ukraine's energy security, ensuring procurement of natural gas for winter heating seasons in the country.

Transition Impact

ETI score: 62

The transition impact of the project will stem from the following two transition impact qualities:

Resilient: The investment in the Eurobond will contribute to the development of the corporate bond market in a challenging environment.

Competitive: The project will include policy dialogue aimed to support the establishment of a gas exchange in Ukraine.

Client Information


Kondor Finance PLC is a public liability company incorporated in the UK specifically for the purpose of NAK's Eurobond issuance.

Naftogaz is a 100% state-owned company with the cabinet of ministers of Ukraine acting as nominated shareholders on behalf of the state. Naftogaz is the holding company of a vertically integrated group of entities with activities including oil and natural gas production, transportation and storage, refining and supply.

EBRD Finance Summary

EUR 120,000,000.00

Total Project Cost

EUR 897,038,464.00

EUR 600,000,000 + U.S.$335,000,000

Environmental and Social Summary

Categorised B (2014). Use of the Bond proceeds will fund the gas purchase; therefore the Project definition is limited to the trading activity only. The EBRD PRs shall apply to this activity and to the corporate environmental, social, labour and health and safety policies and management systems of NAK.

Technical Cooperation and Grant Financing


Company Contact Information

Volodymyr Bariyatskyy
+380 (44) 5863509
Bohdana Khmelnitskogo Str. 6, Kyiv, Ukraine, 01601,

PSD last updated

27 Jul 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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