Government permits Naftogaz to join subsidiary Gaz Ukrainy
Ukraine's Cabinet of Ministers at a government meeting on Wednesday permitted to reorganize subsidiary Gaz Ukrainy by incorporating it into its parent structure, joint-stock company Naftogaz Ukrainy.
The decision was made for further discussion and analysis of the issue with the Finance Ministry.
"After incorporating subsidiary Gaz Ukrainy into Naftogaz Ukrainy, mutual debts will be settled, tangible and non-tangible assets will be combined. This will increase the company's assets and their quality," First Deputy Prime Minister Stepan Kubiv said.
Finance Minister Oleksandr Danyliuk said that the ministry did not see the detailed calculations. He said that the debt of the subsidiary to Naftogaz Ukrainy is around UAH 15 billion, including UAH 11 billion without sources to repay it.
"There is a risk that instead of expanding assets, Naftogaz's assets could narrow and the company would face the deficit," he said, asking to permit the ministry to additionally analyze the issue.
On May 12, 2016 the board of Naftogaz Ukrainy made the decision to join Gaz Ukrainy.