Will Ukrnafta and Naftogaz Soon Collide?

Ukrnafta failed to fulfil its obligations to pay out dividends for 2011-2014, Naftogaz reported, suggesting that the two Ukrainian energy companies might soon collide. They disagree on the proper execution of transfer and payment for 10.1 bcm of commercial natural gas extracted by Ukrnafta and consumed by households in 2006-2011.  

‘According to the decision of the General Meeting of Shareholders of Ukrnafta held on the 10th of October, 2014, the Company was to transfer dividends amounting to UAH1.78 billion to the state budget of Ukraine before the 10th of April, 2014. During the General Meeting of Shareholders that took place on the 22nd of July, 2015, the decision was made for Ukrnafta to transfer dividends amounting to UAH0.63 billion to the state budget before the 3rd of October, 2015. Neither of the decisions has been fulfilled so far. Unpaid dividends amounting to UAH2.41 billion should be transferred to the state budget of Ukraine’ Naftogaz wrote on Friday. 

According to Naftogaz, replacement of a dividend transfer to the state budget with a settlement of a counter monetary claim to Naftogaz, as proposed by Ukrnafta management, violates Ukrainian legislation.  

Earlier this week, as reported by Kyiv Post, Naftogaz announced an open tender to secure legal services to protect its rights and interests in settling the dispute with Merchant International Company Ltd. (the United States) in an English court and the European Court of Human Rights.