Naftogaz CEO says Ukrainian state energy giant to be out of default soon

18 January, 05:14 PM
Oleksiy Chernyshov, Chairman of the Board of Naftogaz of Ukraine (Photo:Press service of Naftogaz of Ukraine)

Oleksiy Chernyshov, Chairman of the Board of Naftogaz of Ukraine (Photo:Press service of Naftogaz of Ukraine)

The Ukrainian state energy giant Naftogaz is working toward resolving its debt default problems quickly, Naftogaz CEO Oleksiy Chernyshov told CNBC’s Hadley Gamble at the World Economic Forum (WEF) in Davos, Switzerland on Jan. 17.

“By the end of this month, we’re planning to find the consent solicitation with our bondholders to restructure,” he said.

“This is happening now quite intensively. My plan within two weeks is to finalize this process.”

In July 2022, the Cabinet of Ministers defaulted on the eurobonds issued by Naftogaz of Ukraine.

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In August, the government said that it was “counting on a positive decision” by Naftogaz bondholders, which “will allow to consolidate all available resources for the state’s primary needs."

However, holders of bonds due in 2022 and 2026 rejected the company’s offers, leading to a default. At the same time, the owners of the 2024 bonds agreed, which made it possible to postpone the payment of EUR 600 million of the principal amount of the debt and EUR 90 million in interest.

In July, Naftogaz was instructed by the Ukrainian government to carry out a debt restructuring.

It was also reported that the UK hedge fund VR Capital took a leading role in blocking the debt restructuring of Naftogaz of Ukraine.

In November, the Cabinet of Ministers sacked Yuriy Vitrenko as the head of Naftogaz of Ukraine.

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