”Naftogaz” stated that the government did not allow to pay the debts and the company is in default

Author:
Anhelina Sheremet
Date:

Naftogaz stated that the government did not allow payments on Eurobonds and the company is in default.

This was reported by the companyʼs press service.

Today, July 26, the deadline for Naftogaz payments to owners of Eurobonds expired.

Before that, on July 21, the government obliged Naftogaz employees to take any actions regarding Eurobonds only after separate agreement with the Cabinet of Ministers. In order to do this, Naftogaz applied to the government in advance regarding the payment of Eurobonds — the company stated that it had funds for this in its accounts. However, Naftogaz stated that the government did not allow the company to fulfill its obligations to the holders of Eurobonds (it is about the principal amount and interest).

"In this way, the government defaulted on Naftogazʼs Eurobonds." Since the non-fulfillment of obligations under Eurobonds practically deprived Naftogaz of access to the international capital market, the government, with its ban on their payment, actually assumed full responsibility for attracting the funds necessary for the import of natural gas for the heating season of 2022-2023. the company said.

  • At the same time, the Interfax agency, citing sources in the government, reported that on July 26, the Cabinet instructed Naftogaz to immediately start the second round of negotiations with investors regarding debt restructuring ($335 million principal loan and €45 million interest). The government explains its request by the fact that creditors have questions about why the state asks to postpone debt payments, while private investors in state-owned companies continue to receive such payments. Ukravtodor and Ukrenergo have already started the relevant negotiations.
  • Before that, Naftogaz had already applied for debt restructuring, but on July 25, the owners of Eurobonds refused to postpone payments for two years.