The largest oil producing company Ukrnafta encourages President Petro Poroshenko to exert impact over the Cabinet of Ministers for the fastest approval of the plan of rehabilitation of the company, as said in the company’s letter to the President dated June 1, the Economic Truth reports, quoting Ukrainian News.

Ukrnafta has the legal right to prolong licenses and the state is obliged to protect its right. We ask to assign the Cabinet of Ministers to urgently start the process of the financial rehabilitation of Ukrnafta, which will allow preserving the company and returning funds to the state budget”, according to the appeal.

The company indicates in the appeal that the State Service of Geology and Mineral Resources of Ukraine illegally denies prolonging the special permissions to Ukrnafta, which expire in 2017, thus actually blocking the oil and gas extraction.

According to company’s estimates, due to the regulator’s actions, this year, Ukrnafta can lose up to 20% of the annual volume of oil production and 50% in the next year.

The Service denies prolonging the special permission, referring to the tax debt of the company.

Currently, the tax debt of Ukrnafta to SFS exceeds UAH 13 bln. It should be reminded that Ukrnafta increased the net loss to UAH 8.739 bln in 2016. On May 17, Ukrnafta submitted a new plan of financial rehabilitation in SFS.

Ukrnafta is the largest Ukrainian oil producing companies. Naftogaz of Ukraine NJSC owns 50% + 1 share of Ukrnafta, Privat Group of Companies Igor Kolomoisky and Gennady Bogoliubov – about 42% of shares.