Naftogaz agrees debt payment schedule with Ostchem, unblocks gas supplies to chemical plants
National joint-stock company Naftogaz Ukrainy and Gaz Ukrainy last week signed amicable agreements with Ostchem Group on the debt payment schedule and conditions to resume gas supplies to chemical enterprises of the group approved in court rulings.
The press service of the national holding said that the whole debt of Cherkasy Azot and Rivneazot (including fines and other accruals under Ukrainian law) in the amount of UAH 2.96 billion is to be paid by the end of January 2016.
On September 24, Naftogaz received a first payment of UAH 385 million under the schedule approved. Supplies of gas to chemical enterprises of the group were unblocked.
"We welcome the constructive position of Ostchem in settling the debt. This agreement would allow reducing the debt of the group to Naftogaz Ukrainy and Gaz Ukrainy. Naftogaz would receive funds to buy gas in winter period. The payment of the debt would allow retaining jobs in the chemical sector and resume production of mineral fertilizers for Ukrainian farmers," reads the report, citing Naftogaz Board Chairman Andriy Kobolev.
The press service said that Ostchem is among top three largest debtors of Naftogaz. Ostchem's debt to Naftogaz was formed in 2006-2011 and was not paid until recently.
"Chemical enterprises pay the debt plus penalty plus 3% per annum plus the adjustment of the debt to the inflation index," government relations and legal director of Naftogaz Ukrainy Yaroslav Tekliuk wrote on his Facebook page.
