Naftogaz Demands Ukrgaz-Energo Liquidation

Naftogaz of Ukraine filed a lawsuit seeking the liquidation of Ukrgaz-Energo, reported Andriy Galushchak, a member of Ukrgaz-Energo’s supervisory board at a press conference held by UNIAN. He said that if Ukrgaz-Energo is dissolved, it will be unable to pay out dividends to its shareholders. On the other hand, he said, if Naftogaz doesn’t repay its debt, the latter will be offset against Naftogaz’s share in Ukrgaz-Energo’s earnings. Vladimir Nesterenko: The lawsuit seems to be part of the ongoing campaign against gas intermediaries, and fits our forecast that the main issue in Ukraine-Russia gas negotiations will be Gazprom’s share in the Ukrainian domestic market. It also looks like liquidation of Ukrgaz-Energo is attractive for Naftogaz, as it would involve writing-off Naftogaz’s debt.