Ukraine enacts law to resume direct Ukrnafta dividend payouts to Naftogaz
Law No. 5020-IX "On the Valuation of Property," which, among other things, restores the procedure for direct payment of dividends by JSC Ukrnafta to its direct shareholder, NJSC Naftogaz Ukrainy, took effect on October 27, Oleksiy Movchan, deputy chairman of the Verkhovna Rada Committee on Economic Development, said.
Law No. 5020-IX, enacted on October 27, reinstates the direct payment of dividends by Ukrnafta to its parent company, Naftogaz Ukrainy. Deputy Chair of the Verkhovna Rada Committee on Economic Development, Oleksiy Movchan, detailed the restoration of this process, which was previously altered in 2024. Initially, under Law No. 3587-IX, state-owned companies were to pay dividends to their parent companies, with the parent company then distributing profits to the state budget in accordance with OECD standards.
However, amendments had created an exception, requiring Ukrnafta to pay dividends directly to the state budget, bypassing Naftogaz. This created a risk of funds being withdrawn twice, disrupting the group's financial management. Movchan's amendment restores a unified, transparent rule: Ukrnafta pays dividends to Naftogaz, who then consolidates results and pays the appropriate share to the state.
This change ensures predictability in relations between the state and state-owned companies, aligning with OECD principles. For 2025, Naftogaz Ukrainy must transfer 30% of its net profit, amounting to UAH 970 million, to the state budget.
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