Naftogaz Ukrainy NAK

Performance indicators

2022: Loss - $1 billion

Losses "Naftogaz of Ukraine" at the end of 2022 exceeded $1 billion (about 40 billion hryvnia). The head of the company, Alexei Chernyshov, announced this in early March 2023.

According to him, by March 2023, Naftogaz is not in default. Chernyshov associates losses with the company's fulfillment of obligations to supply gas to consumers in Ukraine, including utilities, state employees, entrepreneurs. Prices for these supplies are regulated by the state. According to Chernyshov, the government's debts to Naftogaz are accumulating.

Naftogaz is not in default

As Alexey Chernyshov explained, the main receivables to Naftogaz Ukrainy are divided into three components:

• difference in tariffs (UAH 36 billion or $975 million),
• debt of regional gas and gas sales (UAH 76 billion or $2 billion),
• special obligations for 2022-2023 (UAH 158 billion or $4.3 billion).

That is, collectively we are approaching the amount of 300 billion hryvnia ($8.1 billion), which is such a significant part of the state budget of Ukraine, "Chernyshov added.

On February 14, 2023, Bloomberg reported that a group of creditors rejected the offer of the Ukrainian state-owned company Naftogaz to restructure the debt, as it believes that the company is capable of making payments. The rejection came after consultation with analysts Cleary Gottlieb Steen & Hamilton LLP. According to the source of the agency, creditors came to the conclusion that the company is capable of making payments.

This group of creditors has enough influence to prevent Naftogaz from getting the support of 75% of the creditors needed to approve the restructuring, the publication noted.

For its part, Naftogaz sent a request for comment to Lazard Frères SAS, which the company hired to help restructure the debt.^[1]

2024: IT shutdown after massive cyber attack on data center

On January 25, 2024, Naftogaz Ukrainy Corporation announced a hacker attack on its IT infrastructure. The holding was forced to turn off some of the services.

A large-scale cyber attack on one of the data centers used by our companies has been recorded. Currently, websites and a call center are down. We will inform you about the timing of the restoration of services additionally, - said in a message published on the Naftogaz Telegram channel on January 25, 2024 at 11:21 Moscow time.

Naftogaz Ukrainy announced a hacker attack

The failure was also recorded in the Ukrainian information system "Shlyakh," which is used for the work of the border service, representatives of "Ukrtranssecurity" said on Facebook. The official website of Ukrtransbassafety is also unavailable. The reasons for the failure in the organizations did not specify.

As of 13:00 Moscow time on January 26, 2024, Naftogaz did not make a statement about the restoration of its IT systems.

At the same time, it is reported that the server of the Gas Supply Company Naftogaz of Ukraine was subjected to a hacker attack. Moreover, the cyber attack on the company was recorded the next day as Kyiv announced its unwillingness to extend the transit of Russian gas. The contract between Gazprom and Naftogaz expires at the end of 2024. On January 12, 2024, a Russian court satisfied Gazprom's claim against Naftogaz Ukrainy to ban the decision of the arbitration court. The court also ruled in case of non-fulfillment of the ban to recover $150 million from Naftogaz in favor of Gazprom.

Moreover cyber attacks , not only Naftogaz suffered from the end of January 2024. The operator "" Ukrposhta also reported on Facebook (banned in; Russia belongs to a company Meta that is recognized as extremist and banned in the Russian Federation) about a failure. The company noted that employees of Ukrainian post offices can only issue parcels and accept payments.^[2]

2023

Plan to abandon the transit of Russian gas at the end of 2024

Ukraine will not renew the agreement on the transit of Russian gas to Europe, which expires at the end of 2024. This was announced on October 29, 2023 by the head of Naftogaz Alexei Chernyshov.

"This agreement will be completed before the end of 2024 and we have no intention of continuing it. We will not initiate the continuation of this transit. The contract will end - the transit will stop. "

Talks with ExxonMobil, Halliburton and Chevron over Ukraine projects

The head of the board of Naftogaz Ukrainy, Aleksey Chernyshov, said in April 2023 that he had held talks with ExxonMobil, Halliburton and Chevron over projects in the country.

It is noted that he also met with White House officials, members of the US Congress and senators from both parties to enlist support for possible American investments in the Ukrainian energy sector.

"We understand that it is quite difficult for private companies to intervene during a war," he told the Financial Times. "We are working on insurance arrangements to protect their capital. Of course, it will take some time. But we're not waiting - we're going forward.'

Charges against ex-head of the board Kobolev in connection with a $10 million premium for winning a lawsuit with Gazprom

In January 2023, the former head of the board of Naftogaz Ukrainy, Andrei Kobolev, was charged with embezzlement due to the fact that he unjustifiably wrote himself a bonus of 10 million, issued dollars as a reward for a positive decision for the Ukrainian side in a lawsuit against Gazprom"."

2022

Strikes of the Russian Armed Forces on the gas production infrastructure of Ukraine

On November 17, 2022, Naftogaz Ukrainy reported massive strikes by the Russian Armed Forces on gas production infrastructure in eastern Ukraine, several facilities were destroyed.

The dismissal of Yuri Vitrenko from the post of head of the company

On November 1, 2022, the Ukrainian government dismissed Yuriy Vitrenko from the post of head of Naftogaz Ukrainy.

Verkhovna Rada deputy Alexei Goncharenko noted that the new head of Naftogaz is likely to be the Minister of Regional Development Alexei Chernyshov.

Company restructuring blocked by hedge fund VR Capital

In October 2022, the restructuring of Naftogaz Ukrainy was blocked by the VR Capital hedge fund.

Deferral of payments on Eurobonds until 2026

At the end of August 2022, Naftogaz Ukrainy received permission from Eurobond holders to defer payments until 2026 for the third time. We are talking about debt securities with maturity in 2024. The company received permission from holders to extend the appeal and freeze payments until 2026.

Default on Eurobonds due to government ban on payment

In July 2022, Naftogaz declared a technical default - the government did not allow the company to fulfill its obligations to Eurobond holders.

Statement on stopping oil refining against the background of Russia's special operation in Ukraine

By June 22, 2022, the entire oil refining sector of Ukraine ceased to work. The reason is the massive shelling from the Russian Federation, - said the chairman of the board of Naftogaz Ukrainy Yuriy Vitrenko.

2021: Complaint against Gazprom to the European Commission

Main article: Gazprom's business in Ukraine

In December 2021, Naftogaz Ukrainy reported that it had appealed to the EC with a complaint about Gazprom's abuse of its dominant position in the European gas market.

The company claims that Gazprom artificially limited supplies to Europe to create a shortage. Asks the EC to oblige Gazprom to put up for sale through an electronic platform significant volumes of gas for supply through Ukraine.

2020: Forecast loss to $220m

By the end of 2020, Naftogaz Ukrainy will receive a net loss of $137.5 million to $220 million, and by 2023, a net loss could amount to $821 million, according to a report by the Ministry of Finance of Ukraine on fiscal risks in October 2020.

Earlier, Naftogaz Ukrainy said that in the first half of 2020 it recorded a net loss of $405 million against $870.4 million in net profit for the same period last year.

Notes