Naftogaz's May Not See Dividends From Ukrgaz-Energo JV

In an interview with a local daily, Yuriy Boiko said that his ministry will insist that Naftogaz receive dividends from Ukrhaz-Energo (a 50/50% JV between Naftogaz and RosUkrEnergo), which will be transferred to the state budget. Vladimir Nesterenko: Recently the head of Ukrhaz-Energo’s board, Igor Voronin, stated that he does not want the company to pay dividends, but to re-invest its 2006 earnings. Boiko’s warning means that Naftogaz is unlikely to receive dividends regardless of the decision made at Ukrgaz-Energo’s AGM. Either dividends won’t be paid at all, or Naftogaz’s share of the payout will be transferred to the budget.