On November 25, 2015, as part of the new policy of communications and transparency, Ukrnafta’s Chairman of the Executive Board Mark Rollins held a meeting with members of the parliamentary committee on fuel and energy complex to update them on his activity in the company, emphasising the proposed changes in the governance and the management board that will be discussed at the Supervisory Board later in the week.

Mr Rollins also informed the committee that he had presented a proposal to both Prime Minister and Minister of Finance to resolve some of the outstanding financial issues related to the company and secure future revenues to the State in terms of taxation and dividends.

It’s a comprehensive proposal that broadly consists of two packages related to two areas of interest. The first part is aimed at solving the legacy disputes of the company, related to supply of gas, tax and dividends arrears. The second part of the proposal is intended to provide a strong future for the oil and gas sector in Ukraine and offers solutions related to securing cash flow of the company in the future, development of Ukrnafta, and guaranteeing steady benefits for the State. This includes some suggestions on:

– dividend payment policy,
– reform in rates and royalties,
– renewing current licenses and getting new ones,
– reform in sales mechanisms of the company’s upstream production.

“I believe this proposal is in the interest of everybody, but it requires compromise and constructive dialogue. All the solutions I’ve offered in my proposal to the government are good not only for Ukrnafta, they are good for the government shareholders, the entire industry and the country of Ukraine”, stated Mark Rollins.  

It’s now expected that there will be a series of discussions between the company and its various stakeholders, including the government, the minority shareholders and Naftogaz in order to find a good solution that will satisfy everyone involved.

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