OREANDA-NEWS. October 13, 2009. The following statement, which sets out in detail the latest situation and the remaining transaction timeline, must be read in conjunction with the Announcement posted on the Naftogaz website today regarding the invitation to holders of the Eurobond notes due 30 September 2009.

Naftogaz has provided an update on progress of its planned external debt restructuring, including the Offer regarding the invitation by the company to holders of the USD US500m Eurobond to consent to exchange 100% of their bonds for new US dollar denominated bonds. This Offer will attract a 9.5% coupon and benefit from a sovereign guarantee from the Ukraine, with a maturity of September 2014.

The Early Exchange Deadline for the Offer expired at 17.00 C.E.T on Thursday 8 October. As of 8 October, holders of 92% of the Eurobonds have voted to support the restructuring ahead of the formal meeting on 19th October.

Negotiations with the bilateral lenders have progressed and Naftogaz is encouraged by the constructive nature of these discussions.