Today, Ukrnafta's Executive Board addressed the Supervisory Board with a recommendation to initiate a financial stabilisation process in order to maintain Ukrnafta’s solvency and the calling for a general shareholders meeting on the matter.

This move is a justified reaction to the dramatic decrease of the world oil prices over the last year, that are affecting the entire industry. The low price of crude oil, coupled with the difficult financial state of Ukrnafta due to it’s historic tax debt and the continued high taxes on oil production, require the company’s top management to take urgent measures. These measures are aimed at achieving the financial recovery of the company in the nearest future.

In order to prevent oil and gas production suspension, mandatory reduction or enforced leave of personnel, the company's Executive Board decided to initiate a procedure of financial restructuring. This will provide the company with the  financial mechanism that will not only maintain the current production processes, but will also enable the enterprise to pay off its debts. At the same time, this will allow Ukrnafta to start implementing the company's development strategy, namely to increase production while streamlining the production processes.

 Ukrnafta's Executive Board has already consulted with the company's large shareholders on the matter and the company's major creditors.  In particular, the State Fiscal Service and Government representatives, have also been consulted of the matter. All of the parties involved, confirm the necessity and the strategic importance for Ukrnafta, as the largest producer of crude oil and a significent producer of natural gas to recover financially and overcome its current crisis.

Preliminary consultations and the constructive position of the parties, give justified grounds to agree, that joint efforts of the process participants  can stabilize the company’s financial state, facilitate repayment of its debts to the State, and ensure further profitable activity  for the benefit of its shareholders and labour collective of over 25,000 Ukrainians who are employed by Ukrnafta.

The Executive Board of Ukrnafta expects that the Supervisory Board, having discussed this proposition, will promptly call for a general shareholders meeting, where the decision on financial stabilization will be made. Once the financial issues are resolved, the management will be able to execute their ambitious new strategy. This strategy will allow a doubling in annual production of crude oil by 2025 and an increase in natural gas extraction by over 50%. This will  significantly increase the share value of Ukrnafta PJSC on behalf of all its shareholders.

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