New Ukrnafta CEO to start soon as state seeks dividends
15 September 2015
Ukraine’s PM Arseniy Yatsenuyk agreed with the newly elected CEO of Ukraine’s leading oil producer Ukrnafta (UNAF UK) on the terms of his employment contract, according to a Sept. 14 Cabinet press release. In addition, the key issues of Ukrnafta operations were discussed at the meeting, including payment of UAH 2.4 bln in dividends to the state. “According to the agreements, the contract should be signed as soon as possible, and the dividends should be paid in the shortest period,” the release stated. The Ukrnafta board meeting to approve the terms of contract with the CEO is scheduled for this week, according to the release.
Recall, an Ukrnafta shareholder meeting appointed on July 22 Mark Rollins as the new CEO, but he has not taken his position so far. He is expected to represent the interest of the state, which controls a 50%+1 stake in the company. In late August, the acting CEO of Ukrnafta, Volodymyr Pustovarov, who represents the interests of top minority shareholder Igor Kolomoisky, announced the company will keep to its view that it doesn’t have to pay dividends to the state. He cited the existing debt that is allegedly owed to Ukrnafta by state natural gas holding Naftogaz, which exceeds the amount of dividends due.
According to the plan approved by the July 22 shareholder meeting, dividends of a total amount of UAH 1.26 bln (out of which the government is eligible to get UAH 0.63 bln) should be paid by Oct. 3, 2015. At their AGM on Oct. 10, 2014, shareholders voted to pay UAH 3.70 bln in dividends, including UAH 1.85 bln to the state. The government has received neither of these amounts.
Alexander Paraschiy: Solving the dividends issue will be the first test for Ukrnafta’s new CEO, which will illustrate whether he sides with the government, or Kolomoisky, who has controlled all the operations in Ukrnafta for more than a decade. We expect that the minority shareholders of Ukrnafta will receive their dividends on time, no matter how the company treats its majority shareholder.
