The newly-appointed chairman of the board of NJSC Naftogaz Ukrainy, Yuriy Vitrenko, proposes to consider the merger of PJSC Ukrnafta and PJSC Ukrtatnafta (Kremenchuk oil refinery) with the subsequent receipt of a controlling stake in the new vertically integrated company by the state.
“On the one hand, Ukrnafta actually extracts oil, and only Kremenchuk oil refinery can process it in Ukraine. On the other hand, Kremenchuk oil refinery can take large volumes of oil in Ukraine only from Ukrnafta. From an economic point of view, there is a certain economic feasibility in the so-called vertical integration, when there is integration between production and processing,” he said in an interview with Interfax-Ukraine.
According to Vitrenko, the current government, including the president, unlike the past one, does not accept the management and control of state assets by the oligarchs.
“Thus, the question arises: perhaps the state should combine production and processing into this vertical integration? Perhaps, Mr. Kolomoisky [a shareholder of both companies] will be satisfied with the status of a minor shareholder, and will simply receive dividends from this vertical integration without affecting and controlling these assets?” Vitrenko said.
In this regard, the chairman of Naftogaz did not rule out a refusal to divide the assets of PJSC Ukrnafta between the state and minor shareholders.
According to him, initially the option of dividing assets was considered to resolve the issue of the tax debt of the oil producing company, when the shareholders would pay for them and send the received funds to repay it, but difficulties arose with their fair assessment and many technical nuances.
“Therefore, the problem with the tax debt was [at the end of 2020] solved in a different, more realistic way – this is the option with the purchase of gas – and the tax debt was paid off. Ukrnafta now has no debt. The question arises: why then split the assets, from this point of view?” the chairman of Naftogaz said.
“The general leitmotif is not to concede something to Mr. Kolomoisky, but on the contrary to take a tougher stance towards all oligarchs, in particular, towards Kolomoisky regarding the same Ukrnafta and Ukrtatnafta. And in this way to ensure both economic efficiency of assets and national interests,” he said.
As reported, in February 2021, Naftogaz sent a notice to the supervisory board of Ukrnafta on the need to start studying and considering the issue of dividing its assets into business areas with minor shareholders.
Naftogaz Ukrainy owns 50% plus one share in Ukrnafta, a group of companies, associated with the former shareholders of PrivatBank, holds about 42% of shares.
Naftogaz Ukrainy owns 43.05% of Ukrtatnafta shares, another 28% are controlled by the structures of former owners of PrivatBank and businessman Oleksandr Yaroslavsky.
