Page 16 - FSUOGM Week 27 2021

FSUOGM NEWS IN BRIEF FSUOGM

Minister Alexey Sazanov, the Finance countries and given them a reason to create court suspended the Agency’s decision.
Ministry (MinFin) is ready to discuss tax an alliance and form financial ties ... that In other news, Vitrenko told Interfax-
breaks on high-viscosity oil (HVO) that allow them to evade those sanctions," Ukraine that Naftogaz might consider
would take effect from 2024. Both Lukoil he said. "Any individual country being issuing a new Eurobond this autumn. He
(Russia's second-largest oil producer) and sanctioned could be punished, but together said that this issue might be important for
Tatneft have conveyed that there could be they have the ability to conduct back optimising the company’s debt portfolio and
an agreement before 2024, especially given trading." raising new funds for investments.
where the oil price is currently. The Biden administration is potentially Naftogaz made an unsuccessful attempt
While this makes forecasting Tatneft’s on the verge of removing US sanctions to issue new dollar bonds and partially
dividends more challenging, Sova Capital on Iran's oil, petrochemical and shipping repurchase existing bonds in October. Its
cuts the target price on Tatneft's shares from sectors if it strikes a an agreement with plans to issue a new bond in spring 2021
RUB687 per ordinary share and RUB693 Tehran to rejoin the nuclear deal, or Joint also failed due to the scandalous reshuffling
per preferred share to RUB 658/share, but Comprehensive Plan of Action (JCPOA). of the top management in late April. The
keeps the Buy rating on the name. company’s next Eurobond, for $335mn,
"The current weakness makes Tatneft matures in July 2022.
an attractive buying opportunity for those “As we concluded before, there is
optimistic that a deal on tax breaks will be EASTERN EUROPE no political will in Ukraine to dismiss
reached," the analysts argue.. Vitrenko. As such, the board seems to
Naftogaz supervisory board be making another step to find common
ground with Vitrenko, with whom they had
Iran, Russia, China part fails to consider Vitrenko a public confrontation. So far, the conflict
between the CEO and the head of the
of ‘inadvertent axis of the dismissal supervisory board did not affect Naftogaz
bond prices, leaving a good chance for the
sanctioned’, US needs The supervisory board of Naftogaz at its company to place a new bond this autumn
meeting on June 24-25 did not consider the
or next spring, in order to refinance (or buy
rethink says think tank proposal to dismiss CEO Yuriy Vitrenko, back) the next maturing bond. We remain
Interfax-Ukraine reported on June 30 citing
neutral on NAFTO bonds,” an analyst at the
report a statement from the board. Kyiv-based Concorde Capital brokerage said
in a research note.
The board might consider Vitrenko’s
The US needs to rethink its use of oil and dismissal at one of its next meetings, the
other sanctions because the economic statement said.
pressure they have generated has pushed The board also urged the CEO to change US prepares hydrogen
China, Iran, Russia and Venezuela into his Naftogaz' strategy and organisational
strong trading partnerships with each structure in the near future. deal before Merkel and
other rather than isolating the countries as Vitrenko, in turn, assured the board
Washington intended, a Woodrow Wilson that his proposals would be ready by July 1, Zelenskiy visits
International Center for Scholars panel of epravda.com.ua news site reported.
international experts has concluded. Recall, in mid-June, the head of Naftogaz The US government is preparing a
James Bosworth, author of the Latin supervisory board, Clare Spottiswoode, framework for Ukrainian hydrogen exports
America Risk Report, was cited by S&P initiated a board meeting to dismiss to Germany in time for visits in July by
Global Platts as saying that the US has Vitrenko just after the National Agency German chancellor Angela Merkel and
inadvertently created an "axis of the on Corruption Prevention found that Ukrainian President Volodymyr Zelenskiy.
sanctioned". Vitrenko's appointment violated anti- The proposal would include using Ukraine’s
"We've pushed together the sanctioned corruption legislation. Later on, a local existing gas transit system to transport

P16 www. NEWSBASE .com Week 27 07•July•2021