Ukraine's Naftogaz and China Export and Credit Insurance Corporation (Sinosure) concluded a memorandum of understanding for a $1 billion insurance quota for the Naftogaz group, the company said on Tuesday.
Naftogaz said that this would enable loans and foreign direct investments up to $1 billion from China.
"This insurance coverage from Sinosure doesn't require sovereign guarantee, which means that Naftogaz won't rely on Ukraine’s state budget while enabling the group to attract $1 billion in investment into the oil and gas industry," Naftogaz said.
This memorandum follows the established cooperation between the Naftogaz group and Sinosure, Naftogaz said.
Ukraine’s 100 percent state-owned national oil and gas group operates in the production, import, transportation, storage and sales of natural gas, and oil and petroleum products.
Sinosure is China’s state-owned export and credit corporation that operates under the OECD (Organization for Economic Cooperation and Development) model, an accord reached between member states of the OECD that serves as a guideline for establishing tax agreements.
By Murat Temizer