The Cabinet of Ministers of Ukraine at its meeting December 28 restructured the debt of Odesa Portside Chemical Plant (OPP) before the National Joint Stock Company Naftogaz of Ukraine for the gas consumed in the amount of UAH 1.5 billion.
The decision was taken at a Cabinet meeting Wednesday, December 28.
”Now the OPP together with the State Property Fund (SPF)is developing an action plan to optimize company operations, which will allow reducing the debt to Naftogaz,” SPF chief Ihor Bilous said, while presenting the regulation.
According to Bilous, the restructuring will give the company an opportunity to continue its operations and to accelerate the pace of OPP`s adaptation to new market conditions.
As UNIAN reported earlier, this year, the State Property Fund made two attempts to sell the OPP but both attempts failed.
In this regard, its further operations are threatened to be halted as the company has a nearly $251 million debt to Ostchem owned by a Ukrainian businessman Dmytro Firtash and more than a UAH 500 million debt to Naftogaz of Ukraine, while the contract for gas supplies to the OPP expires December 31.
Naftogaz CEO Andriy Kobolev predicted that the debt before the holding would grow to UAH 1.5 billion by year-end. At the same time, he sees no economic justification to transfer the management of OPP to Naftogaz before the mechanism of debt repayment is developed.
UNIAN memo. The OPP, which is located in the town of Yuzhny in Odesa, is Ukraine`s second-largest ammonia and carbamide producer and the third-largest manufacturer of nitrogen fertilizers.
The company also handles shipments of chemical products arriving from CIS countries and exports. The company holds a monopoly in the national market of specialized services for the receipt, cooling and transshipment of ammonia.