27 June 2019, Thursday, 18:39 275

Ukrtransgaz Signs Agreement On Debt Restructuring Of UAH 1.47 Billion With ERU Trading

Редактор: Daria Zubkova

The operator of the gas transportation system, Ukrtransgaz, has signed an agreement on debt restructuring in the amount of UAH 1.47 billion with the ERU Trading company.

Ukrtransgaz said this in a statement, Ukrainian News Agency reports.

“On June 27, Ukrtransgaz concluded an agreement on debt restructuring for a total amount of UAH 1.47 billion, writing off penalties imposed and settling other mutual claims with ERU Trading,” the statement reads.

It is noted that the implementation of the transaction by Ukrtransgaz will settle the claim of the Overseas Private Investment Corporation (OPIC) about settlement of losses to the government of Ukraine, since the contracts for the supply of gas of ERU Trading to Ukrtransgaz are covered by OPIC insurance policy - an independent U.S. government agency which helps U.S. companies invest in emerging markets.

Also, the statement notes that Ukrtransgaz and the Naftogaz of Ukraine national joint-stock company continue to seek a solution to resolve the situation with a shortage of funds of Ukrtransgaz.

As Ukrainian News Agency earlier reported, Ukrtransgaz has offered fuel gas suppliers to repay debt with gas from underground storage facilities.

Earlier, Ukrtransgaz declared the impossibility of timely settlement of gas purchase contracts for its own production and technological needs due to a shortage of funds.

Naftogaz said that the reason for the shortage of funds of the Ukrtransgaz company is an artificially low tariff for the transportation of natural gas and the shortcomings of the Code of the gas transmission system.

100% of the Ukrtransgaz PJSC belongs to Naftogaz.

ERU Trading specializes in trading gas, coal and electricity.

The company’s owners on a parity basis are former DTEK employee Yaroslav Mudryi and a U.S. citizen Dale W. Perry.

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