Gazprom is not paid. Fitch placed Naftogaz B-

Газпром не заплатит. Fitch поставил Нафтогазу B-

Eurobonds of Ukrainian companies are the low reliability rating, as the terms of payment of the debt “remain unclear”.

International rating Agency Fitch has assigned Eurobonds of Naftogaz rating of “B-” (fair reliability). Analysts doubt that Gazprom will pay a 2.6 billion dollars of debt.

Fitch believes that Gazprom is dependent on Naftogaz, but it will be significantly reduced after the launch of the pipeline Nord stream-2 and Turkish stream. Корреспондент.net tells details.

 

Fitch questioned the bonds of Naftogaz

Fitch Ratings has assigned Eurobonds of the Ukrainian company Naftogaz rating of b-. Explaining the reasons for this decision, its experts pointed out that, in assessing the financial condition did not account for possible payout to her of $ 2.6 billion Gazprom, as the “time of execution of the decision of the Stockholm arbitration remain unclear”.

In the rating Agency pointed out that Gazprom has decided to appeal the arbitration decision, and Naftogaz didn’t have any yet, although I tried to speed up payments in a few instances.

The most expensive. Ukraine placed Eurobonds

“However, this dependence will be significantly reduced if the pipelines Nord stream-2 and Turkish stream will be built and fully operational from 2020 to 2021,” said Fitch.

Later, one of the authors of the report and senior Director Fitch Maxim Edelson explained that Fitch in its report didn’t assess the chances of the Naftogaz to pay Gazprom debt.

According to him, in the press release of the Agency “said nothing” about the decision of the arbitration court, Gazprom is obliged to pay the Ukrainian company.

“Currently, we do not include in their models by Naftogaz any payments on the decision of the Stockholm arbitration… currently we have no understanding in terms of what these payments can be implemented,” he told RIA Novosti.

The securities will be issued in the form of credit notes (loan participation notes, LPN). Direct the Issuer will perform a specially created structure Kondor Finance.

On 24 October the Cabinet agreed the attraction of Naftogaz external loan amounting to one billion dollars through the issuance and placement of bonds for up to five years. After it became known that shareholders of Ukrtransgaz and Naftogaz approved a plan to separate operator GTS.

The head of Board of Naftogaz Andrey Kobelev at the end of October stated that in the field of economy Ukraine is a “fail case”.

“If you remove the emotion, we – classic fail-case. Not the leaders and not middle. So the question is, how can we win in the global competition, every year more and more difficult,” he said.

According to KOBOLEV, the leaders will develop rapidly, so it will take a lot of skilled personnel that will make the country even stronger. He added that this situation requires Ukraine to make decisive steps. For example, the creation of the market, which will be a constant competition for capital.

Research company IHS, Markit has prepared the rating of 190 countries on the vulnerability of economies to external factors, in which Ukraine ranked eighth, becoming a leader in vulnerability among emerging economies in the world.

 

Ukraine is launching a “plan B” Nord stream-2

CEO of Naftogaz Yuriy Vitrenko on 2 November said that the Nord stream-2, which goes to Europe bypassing Ukraine, will be built.

Strategic prospects of the Ukrainian gas transport system “is simple but not very positive,” he said.

“There is a likelihood that it will stop, and we’re working on it, but this is unlikely. Especially considering that the German government supports this project, many European companies, unfortunately, due to outright corruption, support this project. So a very good chance that Nord stream-2 will be built”, – said Vitrenko.

Top Manager of Naftogaz stressed that after running SP-2 “is a very high probability that the transit of gas through territory of Ukraine is not at all”.

While Vitrenko said that about any promises by German Chancellor Angela Merkel to save the transit of Russian gas through Ukraine he does not know.

“What is the promise? We have no signed contract. Even if he was, then the contract signed with the Russians, we understand, it is worth nothing. We already know that the Europeans are not willing to give any guarantees”, – said Vitrenko.

However, he said that the main course of action remains “plan a” – the preservation of Russian gas transit through Ukraine. He confirmed that the company is already working on “plan B”, which Vitrenko said at the beginning of October.

It provides for the recovery from Russia of losses for the simple Ukrainian gas transport system. Ukraine estimates the damage at 12 billion dollars, a lawsuit in the international arbitration has been filed, he said then.

In August, Chancellor Angela Merkel during talks with Russian President Vladimir Putin said that Ukraine should not be deprived of Russian gas transit. Putin then said that the Ukrainian transit must meet economic requirements and to be “economic in every sense of the word.”

Gas transit to the EU. Berlin has set Kyiv condition

 

Naftogaz has found the overpayment

In February of this year the Stockholm arbitration obliged Gazprom to pay Naftogaz of 4.63 billion for failure to supply gas transit contract. Taking into account the debt of Kiev, Gazprom was to pay of 2.56 billion dollars.

In Moscow with this decision has disagreed and has promised to appeal to the court of Appeal of Svea Swedish County.

In early September, Vitrenko said that because of the refusal of Gazprom to execute the decision of the Stockholm arbitration, the Russian debt of the company is daily increasing by 500 thousand dollars.

In October, Naftogaz found from Gazprom nine million dollars overpaid for gas transit and enrolled them in debt.

The overpayment arose because the arbitrage price of Gazprom gas for Ukraine should be determined in accordance with quotations on the German NCG hub, in contrast to the previous price formula, which was completely tied to the price of oil.

While the transit fees are based on a formula which takes into account the price of Russian gas supplies to Ukraine (even if such supply is not, as it is now). Because in recent months the price of oil rose, the price is not revised arbitration contract is also growing, and it grows and transit fees.

Because Gazprom does not recognize the decision of Stockholm pays for transit under the old contract. However, Naftogaz arbitration award recognizes, and in accordance with these decisions, the cost of transit should not grow.

Therefore, Naftogaz had to either send the “overpayment” nine million back to Gazprom or to enroll them in accordance with the decision of the court in Stockholm.

 

Gazprom has applied to Ukraine in the UN

On 25 October it was reported that Gazprom began proceedings with Ukraine in accordance with the arbitration rules of the United Nations Commission on international trade law.

“Ukraine in the person of the Antimonopoly Committee imposed on Gazprom unreasonable and unfair penalty in excess of $6 billion (including penalties) for alleged abuse of monopoly position on the market of gas transit of Ukraine”, – stated in the message of the Russian company.

In Gazprom consider that the penalty and measures for its recovery violate the rights of the company, guaranteed by the bilateral intergovernmental agreement on encouragement and mutual protection of investments.

“Gazprom requests the arbitration make the decision on payment of monetary compensation and the use of other remedies. The company will continue to defend their rights by all available means within the framework of applicable legislation”, – is summarized in the message.

 

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