Tatarstan Stops Supplying Oil To Ukrtatnafta.

Poltava governor Bulba disclosed this yesterday. Ukrtatnafta;s key shareholders are Naftogaz Ukrainy and the  Tatarstan government/ Tatneft. The company operates the Kremenchuk refinery in Poltava region. The Tatarstan government?s decision to interrupt oil deliveries to the refinery was prompted by a recent court decision to cancel sale of a 18% stake in Ukrtatnafta to SeaGroup International PLC. and AmRuz Trading AG. The two companies were allegedly controlled by the Tatarstan government. ConcordeCapital: This move by Tatarstan was fully anticipated. Yet, we do not believe Tatar shareholders will be able to achieve a revocation of the court ruling or by any other means prevent Naftogaz Ukrainy/ Ukrainian state from taking full control over Ukrtatnafta. Naftogaz Ukrainy currently owns ~43% in the company, and the disputed 18% stake has been returned to the State Property Fund. We believe that Ukrtatnafta will be able to replace the Tatar oil with crude from other Russian suppliers and continue operating as usual.