"At the end of February, the Energy and Coal Industry Ministry jointly with Naftogaz of Ukraine held negotiations with German AEG about supply and promotion in attraction of EUR 400 million," the publication reads.
As German corporation AEG Industrial Engineering CEO Heinrich Otterpohl has said, the Ukrainian power approached his company proposing to engage in modernization of gas compressor stations. February 27, Otterpohl met with Ukrainian Energy Minister Yuriy Boiko, representatives of NJSC Naftogaz of Ukraine and two German banks in order to discuss details of an agreement. The Head of the German corporation refused to inform about details of the meeting, referring to an agreement with the Ukrainian government not to disclose information about the course of negotiations.
The source in Naftogaz informed that participating in negotiations were Deutsche Bank and Landesbank, which proposed to finance re-equipment of compressor gas pumping stations in case that it is done by AEG company. The matter concerns allocation of a credit to the amount of EUR 400 million. The situation has not been commented in both banks.
According to the newspaper, negotiations with the AEG are of a preliminary character. "We will have to hold a tender, during which we will choose the best proposal. But since the joint project with the AEG allows not only changing equipment, but finding financing, which is necessary for this, I think that the German party has good chances to win the tender," the interlocutor explained. According to him, currently, the main problem is absence of alternative sources of financing, including on the part of the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). "Still we have not received guarantees that those financial institutes will allocate the necessary EUR 400 million to us," he says.
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