National Joint Stock Company Naftogaz of Ukraine states that changes of the company`s statute initiated by the Ministry of Economic Development and Trade jeopardize the allocation of a $500 loan for Naftogaz necessary to carry out gas purchases, the company`s press service reported.
”These events jeopardize the conclusion of a loan agreement by Naftogaz to attract $500 million in loan funds from the World Bank. The funds are needed to buy gas and ensure trouble-free operation in the winter period in Ukraine,” a statement read.
Further, the press service reported that according to the new statute, the Ukrainian Economy Ministry has stripped Naftogaz of powers to control Ukrtransgaz, the operator of Ukraine`s gas transportation system.
”We have been denied powers to control Ukrtransgaz. Now the function has been transferred directly to the ministry,” the press service reported.
It also noted that the changes in the company`s Statute constitute a violation of corporate governance principles that are observed in the OECD countries [Organization for Economic Cooperation and Development] and liabilities previously assumed by Ukraine.
”It also runs contrary to the loan agreement with the European Bank for Reconstruction and Development representing a potential default on debt liabilities, which are guaranteed by the state,” the press service said, adding that changes of the statute may impact other processes that Naftogaz is involved in.
As UNIAN reported earlier, in early December 2015, the Cabinet of Ministers of Ukraine adopted a new statute of Naftogaz in the framework of reforming the company`s governing structure and transferred 100% of the company`s shares that are owned by the state under management of the Ukrainian Ministry of Economic Development and Trade.
UNIAN memo. NJSC Naftogaz of Ukraine is Ukraine`s largest vertically integrated state-owned oil and gas producer whose companies account for more than 97% of domestic production of oil and gas. Naftogaz of Ukraine is engaged in mining, oil and gas extraction, transportation and sale of fuel through its own network of filling stations.
Ukrtransgaz operates 12 underground gas storage facilities, with a total active capacity of about 31 billion cubic meters. USFs are an integral part of Ukraine`s gas supply and gas transit system through its territory