Naftogaz Challenges Sale Of 18% Stake In Ukrtatnafta Refinery In Court

In 2001, an 18% stake in the refinery was sold to two off-shore companies, after which the Tatarstan government gained control over the company. Concorde Capital: Naftogaz has long been eager to gain a controlling stake in Ukrtatnafta. In 2004, the State Property Fund transferred a 43% stake in the company to Naftogaz. The management at Ukrtatnafta management is the result of compromise between Naftogaz and Tatarstan/Tatneft. The attempt by Naftogaz to obtain a controlling stake (43%+18% = 61%) through a court ruling will definitely upset Tartarstan and could disrupt the company?s operations. If successful, Naftogaz will increase its chances of becoming the basis on which the state will create a national vertically integrated oil company.