Following the liability management operation announced by Ukraine on July 20, and the Resolution of the Cabinet of Ministers of Ukraine No. 670 dated 1 August 2022, today, on August 2, National Joint Stock Company “Naftogaz of Ukraine” has launched a further consent solicitation exercise in respect of its outstanding Loan Participation Notes. Noteholders are being asked to approve certain amendments to the conditions of these securities, including deferral of maturity and interest payments for a two-year period which is substantially similar to the terms proposed by the Sovereign in relation to its Eurobonds.

If approved, these liability management operations will contribute further to the preservation of FX liquidity for the country, enabling Naftogaz to focus its available financial resources on strategic priorities such as ensuring the availability natural gas in an amount sufficient for the stable passage of the autumn-winter period of 2022/23, in accordance with Resolution No. 691 of 17 June 2022 of the Cabinet of Ministers of Ukraine.

The Cabinet of Ministers of Ukraine strongly encourages investors to support the latest proposals included in Naftogaz’s liability management operation, which are part of Ukraine’s efforts to proactively manage its debt obligations, and the debt obligations of important state entities, with investors while prioritising essential strategic goals.

The specific terms and timings of the requested amendments by Naftogaz and the Issuer of the securities are described in the announcements of the transaction published today.