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Naftogaz of Ukraine
Native name Нафтогаз України
Romanized name Naftogaz Ukrainy
Type National joint-stock company
Industry Oil and gas
Founded 1998[1]
Headquarters Kyiv, Ukraine
Area served Ukraine
Key people Andriy Kobolyev (CEO)[2]
Products natural gas
crude oil
Services Pipeline transportation
Revenue Increase UAH 65.5 billion (2010)[3]
Operating income Decrease UAH -12.6 billion (2010)[3]
Profit Decrease UAH -22.7 billion (2010)[3]
Total assets Increase UAH 194.1 billion (2010)[3]
Total equity Increase UAH 80.8 billion (2010)[3]
Owners Ministry of Fuel and Energy
Employees 172,000 (2008)

Naftohaz or Naftogaz (Ukrainian: НАК "Нафтогаз України", literally "Oil and gas of Ukraine") is the national oil and gas company of Ukraine founded in 1998.[1] It is the state-owned company[4] subordinated to the Ministry of Fuel and Energy of Ukraine. The company is concerned with extraction, transportation, and refinement of natural gas and crude oil.[5] The company is also active in Egypt and in the United Arab Emirates.[6][7] The head office of the company is in Kiev.[8]

Ukraine's system of trunk natural gas pipelines and underground natural gas depots is operated by Ukrtransgaz, a subsidiary of Naftohaz Ukrayiny.[9] Another subsidiary of Naftohaz Ukrayiny, Haz Ukrayiny, is responsible for domestic gas distribution to local Ukrainian district heating companies.[10]


The company was founded in 1998.[1]

In September 2009 the Fitch Ratings of the company dropped from "CC" to "C".[11] Late 2009 the company restructured its foreign debt via the exchange of eurobonds and obligations on bilateral loans for single investment instruments.[12] Naftohaz transfers gas to Gazprom.[13]

In October 2013 the company narrowly escaped default after a U.S.-based creditor successfully petitioned a court in the United Kingdom to seize a bond coupon payment to settle a $22 million debt.[14]


Production and refinery[edit]



  • Gas of Ukraine
  • Ukravtohaz
  • other enterprises



In 2005 the company became embroiled in a dispute over the natural gas prices with Russian state company Gazprom, which was ended on 4 January 2006. In January 2009 the company was the center of a similar conflict.[4]

On October 24, 2008, Gazprom and Naftohaz signed a long-term cooperation deal in which it was decided that Ukraine will receive Russian natural gas directly from Gazprom and Naftohaz will be the sole importer of Russian natural gas.[16]

Deliveries of 90 million cubic meters of natural gas per day, designed for Naftohaz were fully cut by Gazprom on January 1, 2009, at 10:00 MSK and were restored only on January 13, 2009, at 10:00 MSK after long-term agreements for gas transit and supply for 2009-2019 were signed.

On March 4, 2009, Officers of the Security Service of Ukraine (SBU) and the Alfa special police unit searched the company's headquarters in a case against officials of Naftohaz Ukrayiny on embezzlement of 6.3 billion cubic meters of transit natural gas.[17] The same day the Shevchenkivskyi District Court of Kiev banned the Security Service from investigating the case.[18][19] The next day Bloc Yulia Tymoshenko deputies of the Ukrainian Parliament (Verkhovna Rada) prevented a second raid.[18][19][20] According to Valerii Khoroshkovskyi, the first deputy chairman of the Security Service of Ukraine, the RosUkrEnergo Company and a number of Verkhovna Rada’s deputies filed in a claim against Naftohaz Ukrainy.[21] Also on March 5, 2009, Prime Minister Yulia Tymoshenko awarded the chairman of the State Customs Service Anatoliy Makarenko, deputy chief of the Energy Regional Customs department Taras Shepitko, deputy chief accountant of Naftohaz Ukrayiny NJSC Maria Kushnyr and director of the Judicial Department of Naftohaz Ukrayiny NJSC Sergiy Davydenko with decoration and honorary documents of the government of Ukraine.[22] On March 17, 2009, a criminal case was filed against officials of the Naftohaz Ukrayiny national joint-stock company on suspicion of stealing 6.3 billion cubic meters of natural gas intended for transit through Ukraine by the SBU.[23]

On March 30, 2010, an international arbitration court in Stockholm ordered Naftohaz Ukrayiny to pay RosUkrEnergo around $200 million as a penalty for various breaches of supply, transit and storage contracts.[24] On June 8, 2010, the Stockholm Arbitration Tribunal ordered Naftohaz to return 11 bcm of natural gas to RosUkrEnergo and that RosUkrEnergo would receive from Naftohaz a further 1.1 bcm of natural gas in lieu of RosUkrEnergo's entitlement to penalties for breach of contract.[24][25] On August 16, 2009, Gazprom accused Naftohaz of lying stating that its leadership should not make out RosUkrEnergo and Gazprom one and the same entity.[26] The official letter was signed by the Deputy Chairman of the Board Valery Golubev who is also the Director of Operation for RosUkrEnergo.[27]


The debt of municipal heat supplying companies to the company for gas consumed since the start of the 2009 heating season (from October 1, 2009) had exceeded 927 million Ukrainian hryvnia (UAH) with a 19% level of payment late November 2009, debts for gas consumed in the previous heating season exceeded UAH 2.3 billion with a 74% level of payment.[10][28]

Early December 2009 regional gas supplies companies complained the company did not have enough employees to work, and existing workers did not have experience of work in the natural gas sphere.[29] At the time there was a transfer of gas networks to Naftohaz Ukrayiny's daughter company, Naftohaz Merezhi.[30] Naftohaz immediately assured that it would meet all of its commitments to the consumers of natural gas and the workers of natural gas supply facilities.[30]

On December 10, 2009, President of Ukraine Victor Yushchenko stated: "NJSC Naftohaz Ukrayiny is currently a company that does not formally exist, but it is in fact bankrupt" and that Prime Minister of Ukraine Yulia Tymoshenko was driving the company to bankruptcy so she could create a gas transportation consortium with Russia.[31]

International activities[edit]

The company drills for oil in the Western Desert in Egypt. On December 13, 2006, Naftohaz Ukrayiny and the Egyptian General Petroleum Corporation had signed an agreement on the exploration and development of oil and gas deposits on the eastern territory of Alam El Shawish East in the Western Egyptian desert.[7] On March 29, 2009, the company started to drill its first prospecting gas well Hamad-1 on the territory of the emirate of Al Fujairah in the United Arab Emirates (UAE). The 2005 agreement with UAE investors was signed in 2005. The term of the agreement is 29 years, including the four years of prospecting.[6]


  1. ^ a b c
  2. ^ Ukraine Ready to Pay $4 Billion for Gas If Russia Cuts Price , Bloomberg News (15 May 2014)
  3. ^ a b c d e Public Joint Stock Company "National Joint Stock Company "Naftogas of Ukraine" (31 December 2009). "Consolidated Financial Statements". Naftogaz. Retrieved 12 July 2011. 
  4. ^ a b Ukraine sets gas offer but wants no middleman, Reuters (7-1-2009)
  5. ^ Laws of Ukraine. Cabinet of Ministers order No. 747: On foundation of National joint-stock company "Naftogas of Ukraine". Passed on 1998-05-29. (Ukrainian)
  6. ^ a b Naftohaz Ukrainy Starts To Drill Gas Well In UAE, Ukrainian News Agency (March 30, 2009)
  7. ^ a b Naftohaz Ukrainy Starts Production Of Oil From Extension Well In Egypt, Ukrainian News Agency (February 24, 2009)
  8. ^ "Contacts." Naftogaz of Ukraine. Retrieved on 12 September 2011. "Postal address: Khmelnytsky St. 6, Kyiv, Ukraine, 01001 " - Address in Ukrainian: "вул. Б. Хмельницького 6, м. Київ, 01001, Україна" - Address in Russian: "ул. Б. Хмельницького 6, г. Киев, 01001, Украина"
  9. ^ Natural gas transit through Ukraine down 24.8% year on year, Kyiv Post (November 16, 2009)
  10. ^ a b Gaz Ukrainy demands urgent payment of debts of heat supply companies, Kyiv Post (October 14, 2009)
  11. ^ Fitch downgrades Naftogaz, Ukrinform (September 24, 2009)
  12. ^ Naftohaz Ukrainy completes restructure of eurobonds, Kyiv Post (November 5, 2009)
  13. ^ Ukrainian Naftogaz transfers to Gazprom more than $ 1 billion for imported in October gas RIAN, 05/11/2010
  14. ^ Big debts and dwindling cash: Ukraine tests creditors' nerves, Reuters (17 October 2013)
  15. ^ (Russian) Short bio,
  16. ^ Gazprom, Naftogas sign long-term cooperation deal, UNIAN (24-10-2008)
  17. ^ SBU Officers Leave Building Of Naftohaz On Completing Investigating Actions, Ukrainian News Agency (March 4, 2009)
  18. ^ a b SBU Leave UkrTransHaz Building, Ukrainian News Agency (March 5, 2009)
  19. ^ a b SBU Trying Penetrate UkrTransHaz Building To Carry Out Investigation, Ukrainian News Agency (March 5, 2009)
  20. ^ SBU and BYUT lawmakers fought in Naftogaz (with pictures), UNIAN, (March 5, 2009)
  21. ^ Khoroshkovskyi Unveils Reasons Behind RosUkrEnergo’s And Verkhovna Rada Deputies’ Claims Against Misappropriating 6.3 Billion Cubic Meters Of Gas, Ukrainian News Agency, (March 5, 2009)
  22. ^ Tymoshenko awarded Makarenko and Shepitko, UNIAN, (March 5, 2009)
  23. ^ SBU Sends Criminal Case Against Naftohaz Ukrainy Officials Accused Of Stealing 6.3 Billion Cubic Meters Of Gas To Prosecutors, Ukrainian News Agency, (March 17, 2009)
  24. ^ a b Stockholm court obliges Naftogaz to return 12.1 billion cubic meters of gas to RosUkrEnergo, Kyiv Post (June 8, 2010)
  25. ^ BYuT publishes documents on sales of disputed 11 billion cubic meters of gas by Gazprom to Naftogaz, Kyiv Post (June 25, 2010)
  26. ^ Mirror Weekly (July 16, 2010) (Russian)
  27. ^ Mirror Weekly (July 15, 2010) (Ukrainian)
  28. ^ Debt of heat suppliers to Gaz Ukrainy reaches almost Hr 1 billion, Kyiv Post (November 24, 2009)
  29. ^ Regional gas supplies companies say that Naftogaz Merezhi unable to service gas consumers, Kyiv Post (December 3, 2009)
  30. ^ a b Naftogaz vows to meet all commitments to consumers, Kyiv Post (December 3, 2009)
  31. ^ Yushchenko: Moscow backing Tymoshenko to create gas transportation consortium, Kyiv Post (December 10, 2009)

External links[edit]