Naftogaz of Ukraine Consolidates 61.35% of Ukrtatnafta

According to a recent announcement, Naftogaz of Ukraine (NAFTO 8 1/8 ’09) increased its holdings in the country’s second largest oil refinery Ukrtatnafta to 61.35%. Around 18.3% of the shares were written off by the registrar from the accounts of ING Bank Ukraine, a nominee acting in favor of the companies affiliated with Ukrtatnafta’s Tatar shareholders, Seagroup International Inc. (U.S.) and Amruz Trading AG (Switzerland). Russian Tatneft (TATN RU) controls a 36.6% stake in the refinery. Vladimir Nesterenko: The issue of the privatization of the 18.3% stake has been disputed in the courts for several years, but the issue remains uncertain; the Supreme Court ruled in 2006 that the privatization was legal. Moreover, Tatneft filed a suit against Naftogaz challenging the legality of the share write-off by the registrar in favor of Naftogaz.