Writing off funds from accounts of public joint-stock company Ukrnafta by the State Fiscal Service could result in suspension of operations, the company has said.

"Without the implementation of the court decisions, the seizure of money by the State Fiscal Service may have significant adverse impact on the Ukrnafta's operations, leading to suspension of operations, delays in payment of salaries and taxes. Such actions may also threaten the essential investments by the company to maintain basic production, ensure safety and asset integrity," the company said.

The investment activity is critical for Ukrnafta to stabilize production of hydrocarbons and safeguard future tax revenues, the company said.

Ukrnafta believes that the solution to the problem of overdue taxes owed by the company lies in the implementation of the decisions of the commercial and administrative courts, including the decision obligating the tax authorities to accept from Ukrnafta 2.1 billion cubic meters of natural gas as the tax lien.

As reported, the State Fiscal Service of Ukraine thanks to new legislation has written off UAH 168 million of the tax debt from accounts of Ukrnafta.

The tax debt of Ukrnafta today is around UAH 12.8 billion.

Naftogaz Ukrainy holds 50% plus one share in Ukrnafta, Privat Group holds about 42% of the shares.