Ukraine's Cabinet of Ministers has decided not to permit Yuzgaz B. V. (the Netherlands) to participate in the product sharing agreement (PSA) for the Yuzivska field (Kharkiv and Donetsk regions).

The decision was made on Wednesday.

"We support the proposal of the Ukrainian energy and coal industry minister not to permit Nadra Yuzivska LLC to transfer rights and liabilities outlined in PSA for the Yuzivska field," the government said.

Late October 2015, Nadra Yuzivska LLC managed by Nadra Ukrainy announced a new tender to select the investor.

Yuzgaz won the tender. It was founded by Emerstone Energy, part of Emerstone Capital Partners of businessman Jaroslav Kinach. Kinach was also President of Iskander Energy that sought to restore methane wells in Donetsk region. In 1990s he was Ukraine Country Head of the European Bank for Reconstruction and Development (EBRD) in Ukraine.

The area of the Yuzivska field is 7,886 square kilometers.