KYIV, Ukraine, December 14 /PRNewswire/ --
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.
Natasha Lysova, Foreign Media Relations for TD International, Tel. or Fax: +38-044-462-839, Cell: +38-067-323-6040