Bankruptcy proceedings against Chernomorneftegaz cancelled

Naftogaz of Ukraine reported on July 13, 2016, that the Kiev Appeal Commercial Court cancelled the decision made by the Kiev Commercial Court on the initiation of a bankruptcy case against Chernomorneftegaz PJSC.

While passing the decision to institute bankruptcy proceedings, the Kiev Commercial Court did not pay due regard to provisions of the Law of Ukraine «On Pipeline Transport», stipulating that «for state-owned enterprises engaged in gas transportation via main pipelines and gas storage in underground storage facilities, Naftogaz National Joint Stock Company, subsidiary companies thereof and companies founded thereby, … no legal action of bankruptcy may be brought». Cancellation of the illegal decision will enable Chernomorneftegaz to resume work and, in particular, proceed with recovering its assets that have been lost in Crimea.

In March 2014, Naftogaz lost control over the assets of Chernomorneftegaz in Crimea. The PJSC National Joint Stock Company Chernomorneftegaz was re-registered in Kiev. According Naftogaz the re-registered Chernomorneftegaz is currently working on restoring its documentation and is engaged in a number of litigation processes. Chernomorneftegaz ’s losses incurred due to the loss of assets in Crimea have been reported in a claim filed by the Ministry of Justice of Ukraine against Russia (the case Ukraine vs. Russia).
Naftogaz has recorded losses on the assets from these discontinued operations of UAH 14.9 billion.