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. Last Updated: 07/27/2016

Naftogaz Denies Credit Halt

Naftogaz Ukrainy denied that Deutsche Bank suspended a 2 billion euro ($2.4 billion) credit line after disputes between Naftogaz Ukrainy, Ukraine's state-owned natural gas company, and Gazprom curbed Europe's gas supplies.

Deutsche Bank stopped lending money because of "political uncertainty" in Ukraine and the conflict between Naftogaz Ukrainy and Gazprom, Vedomosti reported Tuesday, citing two unidentified people close to the bank.

"Deutsche Bank hasn't stopped its loan to us,'' Eduard Zvenyuk, a Naftogaz spokesman, said Tuesday.

Deutsche Bank spokeswoman Stephanie Smart declined to comment on the Vedomosti report or a report that the bank had only a nonbinding memorandum of understanding with Naftogaz.

The company has the option to draw down money and may use part of the credit to build a $3 billion terminal on the Black Sea to take imports of liquefied natural gas, Zvenyuk said. The company plans to upgrade the country's gas pipelines, pump more oil and gas, and increase fuel exports to Eastern Europe.

Naftogaz Ukrainy last year drew down $600 million of the credit line after signing for the loan in March during Ukrainian President Viktor Yushchenko's visit to Germany, Naftogaz spokesman Dmytro Marunych said.