Head of state-run Ukrainian energy company Naftogaz prepared to step down if it would facilitate debt deal

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The head of state-run Ukrainian energy company Naftogaz said he is ready to step down if it would help the business to restructure its debt in the wake of Russia’s invasion

The head of state-run Ukrainian energy company Naftogaz is ready to step down if it would help the business to restructure its debt in the wake of Russia’s invasion, he told Reuters on Wednesday.

On Wednesday, the company said its creditors had approved a separate proposal to defer payments for two years on 2024 bonds, while holders of 2026 bonds had rejected such an arrangement. He said investors understood that Naftogaz’s decision to seek a restructuring was made by the government, not the company, which had hoped to keep paying its debt using a loan from the European Bank for Reconstruction and Development.

Naftogaz, which accounted for almost 17% of Ukraine’s total budget revenue last year, has fallen into default after failing to make a number of interest payments last month.

 

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