The shareholders of Ukrnafta (UNAF: SELL) plan to reshuffle the company’s Management and Supervisory Boards, and the Audit Committee, at the company’s EGM scheduled for Nov.17. The shareholders will also vote on the registration of UNAF’s subsidiary in Nigeria. Vladimir Nesterenko: This news came as no suprise, we have been expecting a management reshuffle to follow the appointments in Naftogaz Ukrayiny (for details, see our report from Sep 21 2006). Most likely, the reshuffle was initiated by the new management of Naftogaz Ukraiyny, to strengthen state’s control over the company. However, thanks to President’s recent decision to veto the law decreasing minimum quorum for shareholder meetings from 60% to 50%, Naftogaz is unlikely to succeed. We believe that Naftogaz representatives will have to find a compromise with UNAF’s second largest shareholder, Privat Group, which currently has about a 42% stake and operating control over the company. If not, this EGM is unlikely to take place.