Turkey’s state pipeline operator has received a $400 million loan to cover its natural gas bills as it nears a separate deal with Deutsche Bank AG to finance purchases of the fuel. 

Boru Hatlari ile Petrol Tasima AS, known as Botas, secured the short-term loan from two local banks, according to people with knowledge of the matter who asked not to be identified because the deal is confidential.

The Ankara-based company is trying to raise money to pay a hefty gas-import bill following a surge in energy prices and a collapse in the lira. Botas earlier this month raised gas prices, which are largely subsidized by the government. Still, the increase is unpopular at a time when authorities are desperate to curb inflation, at a 20-year high before crucial elections in 2023. The company declined to comment.

Separately, Botas and Deutsche Bank are in the final stages of a 1-billion-euro ($1.1 billion) deal to fund liquefied natural gas purchases from U.S. producers and traders in Europe, according to people with direct knowledge of the talks. The transaction would mark the company’s first loan for LNG imports, paving the way for similar deals and allowing Botas to diversify supplies currently dominated by Russia and Iran.

Botas has been hard hit by the rally in global gas prices as suppliers struggled to meet a surge in consumption amid the recovery from the pandemic. Turkey’s energy import bill rose further after Russia’s invasion of Ukraine.