PJSC Ukrnafta has received proposal from its majority shareholder, NJSC Naftogas of Ukraine, concerning the agenda for the General meeting of shareholders, scheduled for 15 September 2016. We reiterate that the main item on the agenda is to initiate the financial recovery process for Ukrnafta.

Yet according to proposal of Naftogas of Ukraine, the issue of out-of-court sanation would be reviewed only if Ukrnafta ceases its actions to recover ownership for the natural gas extracted in 2006-2012 or its value within the territory Ukraine.

“In fact, satisfying this proposal would make it impossible for Ukrnafta to manage its own property, the rights to which were proven by the rulings of higher instances’ courts. This is very disappointing as it runs the risk of derailing the whole financial recovery process and is not a necessary condition for success. Also it is my fiduciary duty as Chairman of the company to exercise these rights on behalf of all shareholders so I will be put in a very difficult situation. Instead of directing joint efforts at leading our company out of crisis, the majority shareholder, due to its conflict of interest, may bring Ukrnafta to the point of no return” – stated Mark Rollins, Chairman of the Executive Board of Ukrnafta.

Editor’s Note: The ruling of the Supreme Economic Court of Ukraine on the matter of Ukrnafta’s ownership rights for 2 billion m3 of natural gas remains unexecuted sinсe May of 2014. The Court obliged PJSC Ukrtransgas and NJSC Naftogas of Ukraine not to hinder Ukrnafta in administration of its ownership rights and to issue the gas from underground storage facilities. Several criminal proceeding have been already launched due to noncompliance with the ruling. The State Executive Service of Ukraine is now in charge of enforcing this ruling.

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