The Kyiv Appellate Administrative Court declared illegitimate and cancelled the order of the Ministry of Economy, by which the department charged UAH 90.452 mln of penalty to Ukrnafta for delayed payment of dividends to the state budget, amounting to UAH 632.3 mln, according to the court ruling of the appellate instance dated August 22, promulgated in the Unified State Register of Court Decisions.

Charging this penalty, the Ministry referred to the paragraph 5 of p.5 of art.11 of the Law “On Management of Public Companies”, which stipulates that business entities, the authorized capital of which have the corporate rights of the state, pay dividends to the state budget within the period not later than July 1 of the year, subsequent to the reporting year.

The court found that Ukrnafta is not subject to this norm of law, as its authorized fund does not have a government stake (according to the decision of the High Administrative Court dated February 5, 2009).

The decision on payment of dividends by the company was taken at the general shareholder’s meeting on July 22, 2015.

According to the results of shareholder’s meeting on July 22, the payment should be made until October 3, 2015.

On October 2, Ukrnafta fully completed performance of obligations on payment of dividends for 2014 to Naftogaz of Ukraine NJSC, transferring all UAH 632.3 mln, stipulated by the decision of shareholder’s meeting.

Consequently, the court found that Ukrnafta timely paid dividends for 2014, that’s why there are no reasons for charging the penalty.

As it was reported, the penalty, amounting to UAH 1.5 bln, was also charged to Ukrnafta by the order of the Ministry of Economy dd. January 29, 2016, for untimely payment of dividends to the state budget for 2011-2013.

On June 17, the District Administrative Court dismissed a case of Ukrnafta and supported this order, and, on August 8, the Kyiv Appellate Administrative Court suspended proceeding on this case.

Ukrnafta’s 50%+1 campaign belongs to the state, represented by the Naftogaz of Ukraine NJSC, 13.6% each – to companies Littop Enterprises Limited and Bridgemont Ventures Limited, and 12.9% - Bordo Management Limited.

9.9% of company shares belong to other shareholders.

Source: Economic Truth.