"Naftogaz Trading" implements post-payment for purchased resource at UEEX

Recently, the opportunity of post-payment for the purchased resource of Naftogaz Trading Company by providing a bank guarantee has become available at the CE "Ukrainian Energy Exchange". The bank guarantee is a way of ensuring the fulfillment of obligations at which the bank at the request of the client company issues a documentary obligation to pay the sum of money in a certain period of time.

The bank guarantee offered by Naftogaz Trading allows deferring payment for the purchased resource until the 10th or 11th day of the month following the month of delivery. This tool is a guarantee that the buyer’s obligations to the seller will be met.

UEEX already conducts trades on natural gas, a condition of payment for which is a bank guarantee. At present, the volume of natural gas sales under this payment form is over 100 million cubic meters. Since the beginning of last week, the average daily sales volume for the use of a bank guarantee is 17 million cubic meters per day. These are monthly resources of November and December.

"Introduction of bank guarantees opens an opportunity to defer payment for the purchased resource. Thanks to this, the participating companies have the possibility of wider planning of natural gas purchases for future periods. The option of post payment has already shown its effectiveness and will become an additional factor of activity growth in the gas market in the future," said Oleksandr Kovalenko, UEEX CEO.

CE "Ukrainian Energy Exchange" invites participants to try using post payment and evaluate the benefits of this option.