The Naftogaz of Ukraine company announced a default, as on Tuesday, July 26, the deadline for payments by NJSC Naftogaz to holders of Eurobonds expired, the company’s Telegram channel said.
“The government went into default on Naftogaz Eurobonds,” the report says.
It also explains that the company approached the government of the country, notifying the availability of funds necessary for payments and the “negative consequences” in the event of a “hard default” on the company’s Eurobonds.
“In turn, the Cabinet of Ministers of Ukraine did not provide Naftogaz officials with permission to fulfill obligations to Eurobond holders to make the necessary payments to pay the principal and interest (for the 2022 issue) and interest (for the 2024 issue),” the company noted.
Naftogaz emphasized that the decision of the Ukrainian authorities “practically deprived Naftogaz of access to the international capital market.” The company puts the entire responsibility for this on the government, as well as for raising funds “necessary for importing natural gas for the 2022/2023 heating season.”
Earlier, the government of Ukraine instructed NJSC Naftogaz to coordinate payments on Eurobonds and banned the redemption of the issue of Eurobonds-2022 and coupon payments on Eurobonds-2024, clarified “Newspaper.Ru“.
On July 20, Naftogaz Ukrainy asked the Ukrainian government for a 150 billion hryvnia (about $5 billion) subsidy to purchase gas for the heating season. The company noted that direct budget financing is needed to resolve the issue of gas purchases.
At the same time, the former speaker of the Verkhovna Rada, the former head of the ruling Servant of the People party, Dmitry Razumkov, said that Ukraine should take part of the Russian gas that goes through transit pipelines to the West. In his opinion, a paradoxical situation has developed for Kyiv, in which the Ukrainian side does not replenish its own storage facilities with the necessary amount of fuel, “daily pumping millions of cubic meters of Russian gas.”
#Naftogaz #Ukraine #announced #default #Eurobonds