Ukraine decided to sanitize the largest oil company

Gas station “Ukrnafta” in Kiev

The Supervisory Board of Ukrnafta agreed to rehabilitate the company, said at a briefing in Kiev the Chairman Andriy KOBOLEV (quoted by “RIA Novosti”). The final decision on reorganization shall make the shareholders ‘ meeting, scheduled for July 7, he added. KOBOLEV previously stated that the reorganization may take 12 months. The rehabilitation plan of the Supervisory Board “Ukrnafta” plans to develop till June 21.

On the company’s debt to budget of Ukraine is 10 billion hryvnias (about $372 million). According to KOBOLEV, the main goal of rehabilitation is to stop the accrual of interest on existing tax debt “Ukrnafta”. “Interest cost for the company will be about 4 billion hryvnia (about $159 million) a year. It is obvious that the financial performance of “Ukrnafta” does not allow to carry such a financial burden at the current prices on oil and rent,” — said kobolyev. Net profit of “Ukrnafta”, January—June 2015 has increased five-fold, to 4.06 billion hryvnia (report for the whole of 2015 is still not disclosed).

But, according to a top Manager, the issue of debt relief, the “Ukrnafta”, at least for now is not discussed. KOBOLEV also said that in case the shareholders meeting does not support the proposal about the beginning of procedure of reorganization, most likely, will address the question about stopping activities of the company.

“Ukrnafta” — largest oil and gas company of Ukraine. According to the company, its share in production of oil and gas condensate in Ukraine is 68%, gas — on 11%. 50% plus one share of “Ukrnafta” owned “Naftogaz”, 42% — the group “Privat”, one of the owners of which is Ukrainian businessman Ihor Kolomoisky. Oil “Ukrnafta” is processed on the largest in Ukraine Kremenchug NPZ.

In April, KOBOLEV said that the liquidation of the company will be difficult to make, and suggested that the group “Privat” will challenge it in court. The comment of the representative of the “Private” failed to obtain

In relation to KOBOLEV, the Prosecutor General of Ukraine opened a criminal case on negligence of service for the statement of the Deputy of the Verkhovna Rada Victoria Wojcicki, announced it on his page in Facebook on Monday. Wojcicki has accused a top Manager that he didn’t use his powers to return “Ukrnafta” under the control of the state (group “Privat” in fact controlled the management of the company), changing its leadership and to prevent the growth of the tax debt of the company. As a result, according to the Deputy, in 2015 of “Ukrnafta” was taken 18 billion hryvnia. KOBOLEV previously denied these accusations, stressing that, on the contrary, he was able to return “Ukrnafta” under state control, to change management and to pay dividends. In July 2015, a company headed by Briton mark Rollins, earlier this post was offered to Russian businessman Yevgeny Chichvarkin (this is confirmed Chichvarkin himself, however, later the Minister of economic development of Ukraine aivaras Abromavicius has denied this information).

Co-chair of the energy strategies Foundation Dmytro Marunych admits that money from “Ukrnafta” for the payment of back taxes now no. He recalls that “Private” won a few cases on the return of “Ukrnafta” 2 billion cubic meters of gas, which at the request of “Naftogaz”, the company was sold to the population at “an unfair price”. Return “Ukrnafta” this gas or compensation for it (structures of Kolomoisky require Ukraine via the Stockholm arbitration about $5 billion for the selected gas) could improve the company, but of the “Naftogaz” now there is neither one nor the other, experts say. The elimination of “Ukrnafta” in the case that the scheme of rehabilitation of the company is agreed, unfavorable either to the state or “private”, he adds.