IMF Confirms No Public Funds Allocated for Gas Imports in Ukraine
The updated Extended Fund Facility (EFF) program by the International Monetary Fund (IMF) for Ukraine clearly states that government budget expenditures for natural gas imports are not planned. According to information provided by Interfax-Ukraine, the Naftogaz group intends to purchase gas to meet heating season needs for 2024-2025 using funds from international financial institutions, donors, its own reserves, and Ukrainian banks’ credits. However, the document emphasizes that there are no budgetary allocations for these purchases, confirming that no public funds are allocated for this purpose. The IMF highlights that Naftogaz will implement a comprehensive gas import plan in 2025 to replace the lost domestic production caused by attacks on its infrastructure. Financial support for these imports will mainly rely on international financial organizations, donor funds, internal resources, and domestic bank financing, with no additional government spending expected. The report further states that by early 2025, nearly half of Naftogaz’s gas infrastructure had been attacked and damaged, leading to a sharp decline in gas production and storage levels reaching the lowest point in 11 years. According to the World Bank, since the full-scale invasion began, damages to Ukraine’s energy and extraction sectors amount to $20.5 billion, with estimated rebuilding costs at $68 billion, about 13% of the total recovery needs. Analysts from Expro report that as of the end of June, Ukraine’s underground gas storage had just over 8 billion cubic meters, 19.6% less than the same period last year—marking the lowest storage levels in over a decade. Despite this, the decline in reserves is continuing to decrease compared to 2024. To ensure a stable winter, Ukraine needs to accumulate at least 12.65 billion cubic meters of gas in storage before the heating season begins, although reserve levels should ideally be higher for security reasons.