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Ukrainian government increases Naftogaz charter capital by 8 pct to 6 bln dlr

Naftogaz Ukrainy is an association of the biggest oil and gas producing enterprises in Ukraine

KIEV, October 27 (Itar-Tass) —— The Ukrainian government has made a decision to increase the charter capital of the oil and gas company Naftogaz Ukrainy by 7.5 percent (0.4 bln dlr) to 5.7 billion dollars, the government’s press service has said.

As a spokesperson for the Ukrainian Energy and Coal Energy Ministry has told Itar-Tass, the company’s charter capital was increased with internal state loan bonds, to be issued by Naftogaz. The funds drawn in this way will be meant primarily for settlements with Russia’s Gazprom for gas provided.

Naftogaz Ukrainy is an association of the biggest oil and gas producing enterprises in Ukraine. The holding company is also a monopoly controlling the transit and keeping of natural gas in underground storages, and also the transit of oil.

In September Ukraine’s Energy and Coal Industry Minister Yuri Boiko said that Ukraine had launched a process of restructuring Naftogaz by splitting it into three separate companies, thereby acting on the country’s pledges made at the moment of its accession to the European Energy Community. It is assumed that a gas production transportation and sales and distribution company will be separated from Naftogaz.

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