Ukrainian Government backs new proposal to postpone Naftogaz Eurobond payments

In pursuance to the Cabinet of Ministers of Ukraine (CMU) Instruction No.625-р dated 21 July 2022, Naftogaz has submitted a new proposal to the CMU on amendments to the conditions of debt obligations of the national company to Eurobond holders. The Government commended Naftogaz’s actions and granted the required approvals. In the coming days, the national company will submit new conditions of payment postponement to investors.

The Government noted that they are counting on a favourable decision from Naftogaz Eurobond holders regarding the new conditions of payment postponement that will make it possible to consolidate all existing resources for the state’s primary needs.

The Government of Ukraine expects Naftogaz Eurobond holders to support the proposed conditions of payment postponement. This will enable Naftogaz to use the accumulated funds for natural gas import and preparation for the heating season which could be the most difficult in modern Ukrainian history.

Ukraine’s Ministry of Finance confirmed that the new proposal to Naftogaz Eurobond holders to postpone payments has been coordinated with the Ministry of Finance and that the conditions of the proposal comply with the conditions of the proposal to the investors to postpone payments for sovereign Eurobonds of Ukraine and proposals to investors from Ukrenergo and Ukravtodor.

“In order to be granted consent from the Eurobond holders at the first meeting, the quorum should consist of 2/3 of the total face value of Eurobonds, and 75% of the meeting participants should cast their votes in favour,” emphasised the Chief Executive Officer of National Joint Stock Company “Naftogaz of Ukraine” Yuriy Vitrenko.