Ukrnafta considers it necessary to explain the following position:
Ukrnafta owns 2 061 805 134 m3 of natural gas produced in 2006, which was transferred to the Ukrainian gas transportation system and delivered to underground gas storage facilities of PJSC “Ukrtransgas”, as documented in respective bilateral acts of transfer and receipt for storage. There was no state price regulation for gas extracted in 2006 at the time, thus national regulator NERC did not have authority to set prices for the commercial-grade gas.
The decision of Kyiv Economic Court of January 20, 2011 came into force in May 2014, obliging PJSC “Ukrtransgas” and NJSC “Naftogas of Ukraine” not to obstruct the execution of ownership rights of PJSC “Ukrnafta” for this volume of gas, to remove it from the underground gas storage and to transfer it to PJSC “Ukrnafta”.
In July 2014, our Company requested the judgement enforcement for the abovementioned court decision. However, up to this time the court decision remains unfulfilled by the officials of PJSC Ukrtransgas and NJSC Naftogas of Ukraine.
Following the required enforcement protocol, on June 3, 2016 the State Enforcement Service applied the necessary measures for execution of the court decision. One of those measures was the administrative seizure of the required volume of natural gas stored at the underground gas storage of PJSC Ukrtransgas.
PJSC “Ukrnafta” considers this the legitimate and fair enforcement of the judgment, which entered into force some time ago. The applied enforcement action is aimed at ensuring the possibility for the Company to administer its property that has been unreasonably withheld by the debtors.