22 April 2004 22:11
Naftohaz Ukrayiny, Gazprom agree Eurobond transfer scheme
KYIV. April 22 (Interfax) - Ukrainian oil and gas concern Naftohaz Ukrayiny and Russian gas giant Gazprom have agreed
a scheme for transferring $1.4 billion in Eurobonds, issued by Naftohaz Ukrayiny as part of a program to restructure its
debt to the Russian company.
Naftohaz Ukrayiny CEO Yuri Boiko told journalists that the approved scheme resolves the problem of Gazprom being hit
with a tax bill for about $650 million.
"At the moment details of the process for transferring bonds to
pay the gas debt are being agreed. The process has been carefully
"The main nuances of the scheme are that Ukraine receives a significant discount when paying the debt. The debt
is paid within two days of the decision being reached and the entire procedure corresponds with the intergovernmental,
agreement signed in 2001," he said.
studied and developed. There are no major problems," he said.
Boiko said that a Naftohaz Ukrayiny delegation held talks with Gazprom on this issue for nearly two weeks in Moscow
and on Wednesday a Gazprom delegation arrived in Kyiv.
Naftohaz Ukrayiny plans to pay its gas debt to Gazprom in full by the end of 2004. The Russian side puts this debt at
$1.62 billion.
Under an intergovernmental agreement between Russia and Ukraine from October 4, 2001, Naftohaz Ukrayiny debt to
Gazprom should be paid by transferring Eurobonds worth $1.43 billion.
To restructure its debt to Gazprom, Naftohaz Ukrayiny issued $1.4 billion in Eurobonds maturing in 2004-2013 at LIBOR
+ 1%, but until recently the Russian company refused to accept them.
Under the intergovernmental agreement, the Eurobonds are guaranteed by the Ukrainian government. The principal on the
debt is paid in equal lots of 5% every six months from May 1, 2004 to November 1, 2013.
Naftohaz Ukrayiny net profit in 2003 fell 7.7% year-on-year to 1.2 billion hryvni. The company's gross revenue
last year increased 17.2% to 35.96 billion hryvni.
The official exchange rate on April 21 was 5.3288 hryvna to the dollar. [UA RU EUROPE ASIA EEU EMRG ENR ELG NGS DBT
EUB] rd
[Interfax] |
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