Ukrnafta pays UAH 1.8 bln dividends to the state

Ukraine’s biggest oil producer and gasoline retailer Ukrnfata (UNAF UK) has repaid its UAH 1.77 bln in dividend obligations to the state, Prime Minister Arseniy Yatsenyuk stated on Dec. 30. They are part of dividends from its profit in 2011-2013 that the company owed to the state. In September 2015, Ukrnafta paid UAH 0.63 bln in dividends for the year 2014, just after the arrival of the company’s new CEO, who was selected by the Cabinet and minority shareholders.

Alexander Paraschiy: This is encouraging for both Ukrnafta and the government, who seem to have finally found some compromise. The payment was made in accordance with the promise of CEO Mark Rollins that was made in September. However, dividends are only part of Ukrnafta’s obligations to the state. In particular, the company has about UAH 9.5 bln in production tax obligations. In September, Rollins suggested that this debt issue can be solved together with resolving Naftogaz’s debt to Ukrnafta for an unpaid 10.1 bcm of natural gas. At this stage, Naftogaz, which holds a 50%+1 share in Ukrnafta, and the holders of a 42% stake (widely believed to be controlled by Kolomoiskiy) have not reached consensus on returning this gas or compensation for it. That means we’re still far away from a final solution on Ukrnafta’s obligations to the state.