Ukraine's Naftogaz signs preliminary agreement to restructure $1.4 Billion in Eurobonds
Naftogaz, the Ukrainian energy company owned by the state, said that it had?reached? a preliminary agreement for restructuring two Eurobond tranches of EUR1.2 billion ($1.38billion) due in this year and 2028. The Russian war is continuing to cause damage to its infrastructure.
Subject to approval, the EUR695 ($802,000,000) Eurobond due July 19, 2026 and another $584,000,000 in notes due November 8, 2028 will be extended until January 2032 and 2033 respectively.
In a press release, Chief Executive Sergii Koretskyi stated that "the successful completion of restructuring will give us more flexibility to direct resources toward restoring infrastructure?and preparing for heating season."
Since 2025, Russia has increased the scale and intensity of its attacks against Ukraine's energy industry, targeting gas and power plants.
Sergii Koretskyi, the Naftogaz Executive Chief, said that Russia had carried out more than 229 attacks on the assets of the company in '2025 - more than the previous three years combined. More than 170 assaults have been recorded in 2026.
Naftogaz restructured two notes originally due in the years 2024 and 2026 in July 2023. The company announced in a late Tuesday statement that the agreement in principle was subject to corporate and government approvals.
LESS OUTPUT - MORE IMPORTS
Before the 'war with Russia', Ukraine met its gas needs almost entirely through domestic production. Facilities were located in the Poltava area in the center of the country and the Kharkiv region in the n.e.
Naftogaz reported that its production of gas decreased from 14.7 billion cubic metres in 2024 to 13.3 bcm by?2025.
Koretskyi stated that "we are forced to import gas in order to compensate for the losses we have suffered from our domestic production."
Naftogaz has stated that it imported approximately?5.7 billion cubic meters of gas in 2025, "to ensure the sustainability of the heating season of?2025-2026", according to the company. The company did not provide any data on gas imports for 2024.
Ukraine buys gas for heating season in the fall and winter.
According to the energy ministry, the country must have 13 billion cubic meters of gas stored by the beginning of the heating season. $1 = 0.8669 Euros (Reporting from Jekaterina Glubkova in Tokyo and Pavel Polityuk, Kyiv. Editing by Rashmi?Aich and Louise Heavens).
(source: Reuters)
