"Naftogaz" announced the default on Eurobonds due to the refusal of the Cabinet of Ministers to agree on payments
NJSC "Naftogaz Ukraine" warned of default on Eurobonds due to the government's refusal to coordinate payments on them.
It was reported by Censor.NЕТ referring to announcement of NJSC.
"Today, July 26, 2022, the deadline for NJSC Naftogaz to pay its Eurobond holders expired," the company said in a press release.
The NJSC reminded that the Ukrainian Cabinet of Ministers on July 21, acting as a general meeting of shareholders, obliged the company's officials to approve any agreements on Eurobonds with it.
In an official letter from the Government, the company indicated that it has sufficient funds in its accounts to make payments on the Eurobonds, and described the risks and negative consequences for Naftogaz and the country in the event of a "hard default" against them.
According to the NJSC, in turn, Cabinet of Ministers did not give the company officials permission to fulfill their obligations to the holders of Eurobonds to make the necessary payments for the payment of principal and interest (for the 2022 issue), as well as interest (for the 2024 issue).
"Thus, the government went into default on NJSC Naftogaz of Ukraine's Eurobonds. Since the default on the Eurobonds practically deprived Naftogaz of access to the international capital market, the CMU by its ban on their payment actually took full responsibility for raising funds needed to import natural gas to pass the 2022/2023 heating season," the press release summarizes.
