Home Economy Naftogaz of Ukraine declared default on Eurobonds

Naftogaz of Ukraine declared default on Eurobonds

Naftogaz Ukrainy has declared a default on its Eurobonds, as the deadline for payments by NJSC Naftogaz to Eurobond holders has expired. This was reported on July 26 in the company’s Telegram channel.

The payment period for Eurobond holders expired on July 26, 2022, and the government of Ukraine went into default on these securities. The authorities also did not give the company’s management permission to pay off the debt on Eurobonds. We are talking about the principal amount of the issue maturing in 2022 and the interest on the issue maturing in 2024.

The company said that the government has deprived it of access to international capital markets, thereby taking responsibility for raising the funds necessary for gas imports during the 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, Gazeta.Ru specified.

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.”

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