Ukrnafta minorities threaten Ukraine to pursue USD 5 bln compensation
21 January 2015
Three unknown Cyprian companies claiming to be minority shareholders of Ukrnafta (UNAF UK) sent a letter to Ukraine’s Energy Minister (published by the ZN.UA news site on Jan. 20) demanding compensation of more than USD 5 bln in losses inflicted upon “investors and Ukrnafta” by the Ukrainian government during the last eight years.
The “investors” claim that the government forced Ukrnafta to sell its produced natural gas at a price below production costs during 2006-2014, did not allow the company to sell “surplus” gas in 2006-2007, and misappropriated Ukrnafta’s gas in 2006-2010. The representatives of three companies are “available to meet with representatives of Ukraine” to settle these disputes. Otherwise, in three months, they intend to submit the dispute for international arbitration.
ZN.UA suggested the letter was a reaction to the so-called Ukrnafta law adopted last week by Ukraine’s parliament, which reduces the quorum for shareholder meetings to 50%+1 from 60%. It enables the state, which has the 50%+1 stake in Ukrnafta, to elect its management and regain control over the company.
Currently, Ukrnafta’s management is loyal to the holders of the 42% stake, who are linked to Ukrainian tycoon Igor Kolomoisky. The 60% shareholder meeting quorum allowed the holders of the 42% stake to block any shareholder meeting aimed at management replacement. For Ukrnafta, the amended quorum will only be applied in 2016.
