KYIV, Ukraine, Dec. 14 /CNW/ -- Bloc of Yulia Tymoshenko (BYuT) Deputies
Viktor Pynzennyk, Yuriy Prodan, and Hryhoriy Nemyria met today in Kyiv with
four of the largest foreign creditors of Naftohaz Ukraine, Ukraine's
state-owned oil and gas company. Investment bankers requested the meeting
with BYuT to address Naftohaz Ukraine's precarious financial situation.
The Western investors' concerns are rooted in the failure of the outgoing
Party of Regions government of Viktor Yanukovich to provide Naftohaz Ukraine
with the proper policies and financial management. The outgoing government's
failure to support its national oil and gas company has caused international
creditors to question whether Naftohaz Ukraine will be able to meet its
financial obligations. According to the creditors, if action is not taken by
31 December 2007, Naftohaz Ukraine will violate its foreign loan agreements
and be forced to immediately repay US$2.6 billion in loans.
A default by Naftohaz Ukraine on its loan agreements could cause severe
consequences for Ukraine's international reputation among foreign investors
and would drastically increase the cost of borrowing money for Ukrainian
public and private entities.
BYuT Deputies pledged their commitment to reforming the entire energy
sector, including Naftohaz Ukraine, and their support for an improved foreign
investment climate. BYuT Deputies promised to work closely with creditors
once the BYuT-NUNS coalition is in government to restore Naftohaz Ukraine to a
position of transparency, sound policy and strong financial standing.
For further information:
For further information: TD International, the FARA-registered
representative of Ms. Tymoshenko and Bloc Yulia Tymoshenko (BYuT),