Kyiv urges creditors to give Naftogaz more headroom: press

Ukraine's Naftogaz has requested a two-year deferment on its loans with international creditors as it deals with the chaos of war with Russia, Reuters reported July 22. But Kyiv believes this is not long enough, calling the potential compromise "unsatisfactory".

Moscow's invasion has caused a "significant economic and business decline" in Ukraine since hostilities began five months ago, Naftogaz said. With many residents and businesses now unable to pay their bills on time, Naftogaz faces a liquidity crunch as its cash flow is extremely unreliable.

Naftogaz bondholders had until July 21 to vote on the proposal, which would put all of its foreign bond payments on hold until July 2024. Neither Kyiv nor Naftogaz has confirmed how many investors have signed up to the plan.

Ukraine's national gas company is also seeking to strike a deal with its gas financing division, Kondor Finance, from which it has presumably taken on loans. A resolution from Kyiv published earlier today required Naftogaz and Kondor Finance to enter talks. Kyiv will set the terms for Naftogaz's repayment plan, but did not say what the conditions were.