12:55 01.11.2016

Court bans government from making decision to transfer stake in Yuzivska field project to Yuzgaz

2 min read
Court bans government from making decision to transfer stake in Yuzivska field project to Yuzgaz

Kyiv's district administrative court has banned the Ukrainian government from making a decision to transfer a stake in the project to develop the Yuzivska field (Kharkiv and Donetsk regions) to Yuzgaz B. V. (the Netherlands) as a safeguard measures under a claim of a nongovernmental organization, Nadra Yuzivska LLC Director Viktor Nazarkevych said at a press conference in Kyiv on Tuesday.

"In the past month two claims from nongovernmental organizations appeared. One of them managed to receive a court ruling banning the government from making any decisions and taking any measures to transfer the stake to Yuzgaz B.V. until the main court case is heard," he said.

Yuzgaz founder Jaroslav Kinach said that his company does not intend to use the 'silence is consent' principle of the government for the participation in the project, while the term for making the decision by the government will expire on Wednesday.

"The 'silence is consent' principle does not suit us… There are many risks in the project. One cannot put himself in the situation when the 'silence is consent' principle applied," he said.

The interagency commission to organize the signing of product sharing agreements that was to meet Tuesday morning has not made any decisions on Yuzgaz B. V. and the Yuzivska field.

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.

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