Ukraine allows Naftogaz to amend debt terms

The Ukrainian government has given state-owned energy company Naftogaz the go-ahead to agree new terms of restructuring of its international bonds after defaulting on payments last week.

The Ukrainian government has given state-owned energy company Naftogaz the go-ahead to agree on new terms for restructuring of its international bonds after defaulting on payments last week. The order published late on Monday did not specify detail for the proposed restructuring.

Naftogaz became the first Ukrainian government entity to default since Russia invaded the country in February, having failed to gain creditor support on a proposal to freeze payments on some of its bonds for two years. The company last week said it would offer its Eurobond holders an agreement to defer payments in accordance with terms set by the government.