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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.

Workers position pipework on an oil drilling platform in Boryslav, Lviv region, Ukraine.

Photographer: Vincent Mundy/Bloomberg

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.