Enwell Energy plc (formerly Regal Petroleum plc, Great Britain) might lose its hydrocarbon production licenses in Ukraine due to the sanctions imposed by the National Security and Defense Council (NSDC) against its majority shareholder Vadim Novinsky.
This follows from a statement by the company, the Ukrainian News agency reports.
"Law 2805-IX to enter into force on March 28, 2023, is a substantial package of new procedures and reforms aimed at improving the regulatory process related to the exploration and development of natural resources in Ukraine. However, the new legislation includes provisions on that if the ultimate beneficial owner of a license for the extraction of minerals or hydrocarbons becomes the object of sanctions against Ukraine, the state authorities of Ukraine may suspend or revoke this license," the message reads.
In connection with the introduction by the authorities of Ukraine of restrictive measures (sanctions) against Vadim Novinsky, who owns a large stake in the company, the company is investigating whether the provisions of the new law will affect its licenses for hydrocarbon production.
"The company is reviewing the new legislation and consulting with its external legal and other advisors regarding the precise interpretation of the new law to allow the company to evaluate any necessary actions. Meanwhile, the company's business continues as usual," the statement said.
As the Ukrainian News agency earlier reported, in December 2022, the NSDC imposed sanctions against the Vicar of the Kyiv-Pechersk Lavra of the Moscow Patriarchate Pavel (Lebed), other representatives of the Moscow Patriarchate and former member of the Verkhovna Rada, Vadim Novinsky.
In 2021, compared to 2020, Enwell Energy increased net income by 16 times, or USD 47.9 million, to USD 51.1 million.
The oil and gas wing Smart-Holding is represented by the British company Enwell Energy plc, as well as Ukrainian gas production companies Prom-Energo Product (in 2016 it became part of Regal Petroleum), UkrGasVydobuvannya and Arkona Gas-Energy LLC.
Smart Holding is controlled by businessman Vadim Novinsky.
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