German Bank May Issue 2 Billion Euro Credit to Ukraine

KIEV, Ukraine -- Deutsche Bank and Ukraine’s oil and gas company Neftegaz are drafting an agreement on a credit of up to two billion euros for an energy project to overhaul the Ukrainian gas transportation network.

First Vice Prime Minister Anatoly Kinakh told journalists on Saturday, “We are preparing a serious draft for a Deutsche Bank credit to the national joint stock company Neftegaz Ukrainy to a sum of about two billion euros for the technical modernisation of the gas transportation system and other projects.”

He said the work could be completed before President Viktor Yushchenko’s official visit to Germany scheduled for March 8-9.

According to Kinakh, one of the issues to be discussed in Germany will be cooperation in the creation of a gas transportation consortium.

“I support the resumption of systemic work on the creation of a consortium on a trilateral basis,” Kinakh said.

Earlier Ukraine, Russia, and Germany agreed to create a consortium for the development and management of the gas transportation system. Russia will contribute natural gas, Ukraine will provide transit capacities, and Germany will act as a consumer.

Yushchenko has stressed the need to resume work on the consortium with the participation of the European Union.