Ukraine’s Biggest Gas Company Forced Into Back Seat in Debt Talks It Didn’t Want
- Ukraine’s government now decides fate of Naftogaz debt talks
- Creditors are skeptical about deal terms, waiver of covenants
Workers position pipework on an oil drilling platform in Boryslav, Lviv region, Ukraine.
Photographer: Vincent Mundy/BloombergThis article is for subscribers only.
Ukraine’s biggest gas company is losing control over talks to restructure its own debt, with the government insisting it must pre-approve any deal.
The cabinet has just given itself the right to make the final decision about company’s debt payments, according to a decree published on Friday. This puts NJSC Naftogaz Ukrainy in an even more difficult situation as it tries to negotiate a payment-freeze agreement with the holders of around $1.4 billion of its bonds.