Ukrtransgaz gets shares seized from company owned by Russia's Gazprom

Ukraine's Asset Recovery and Management Agency (ARMA) has transferred shares of Gastransit, which were previously seized from Russia's Gazprom, to state-owned Ukrtransgaz, the Ukrainian operator of gas storage facilities.

ARMA says it had faced significant resistance from the owner and persons associated with the owner, who by their actions tried to prevent the transfer of the shares, the Agency's press service said.

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"Due to the coordinated actions of ARMA, NABU [National Anti-corruption Bureau of Ukraine] and SAPO (Specialized Anti-Corruption Prosecutor's Office), the seized shares were transferred to the manager, Ukrtransgaz JSC, which was selected on a competitive basis to manage the right to the seized shares, and the corresponding changes were introduced to the securities depository accounting system," it said.

"From now on, proceeds from the management of the seized shares of Gastransit will be transferred to the state budget," it agency added.

Background

• Gastransit was established in 1997 with the aim of increasing transit shipments of Russian natural gas to Turkey and the countries of the Balkan region. Before 2017, Ukraine's Naftogaz and Russia's Gazprom each owned 40.22% of the company's shares, while Turkey's Turusgaz had 19.56%.
• In May 2017, the Ministry of Justice of Ukraine sent the Russian gas monopoly Gazprom a resolution to seize the shares of its subsidiary, Gastransit, as part of enforcement proceedings to recover from Gazprom a fine of almost UAH 190 billion (US$6.86 billion) imposed by the Antimonopoly Committee of Ukraine.
• In June 2019, Ukrtransgaz announced that it was not able to pay on time under gas purchase contracts for its own production and technological needs due to a shortage of funds.
• At the end of April 2020, ARMA announced a tender for the management of Gastransit shares.
• On July 3, 2020, the Antimonopoly Committee of Ukraine allowed the operator of gas storage facilities, Ukrtransgaz, to manage the shares of Gastransit previously seized from Gazprom.
• On July 14, 2020, the court seized UAH 90 million in Gastransit's property, which is US$3.25 million.