2 February 2006. NJSC Naftogaz Ukrainy and ROSUKRENERGO AG founded CJSC UKRGAZ-ENERGO on a parity basis. ROSUKRENERGO AG and CJSC UKRGAZ-ENERGO made and entered into a five year Agreement on purchase and sales of natural gas of Central Asian and Russian origin.

Financial Results

Since the very beginning of its operations in Ukrainian market, CJSC UKRGAZ-ENERGO has been oriented towards building transparent market strategy. For that matter, the Company builds policy in the area of corporate finance by relying on international principles й operation standards. Since its formation of CJSC UKRGAZ-ENERGO has been keeping accounts as per International Financial Reporting Standards (IFRS[1]).

The auditor of CJSC UKRGAZ-ENERGO is Ernst&Young, which provides quarterly, nine month and annual audits of the operations.

The Company consistently stands for the practices of monetary settlement and advance payment for supplied fuels and avoids barter schemes in the operations abound in Ukrainian gas market of the past and frequently caused abuse and corruption.

In 2006, CJSC UKRGAZ-ENERGO transferred to the State Budget of Ukraine and the special purpose funds over 4 bln. UAH in taxes and duties. The amount of UKRGAZ-ENERGO's transfers to the State Budget leaves behind such industries of the national economy as ferrous metallurgy and railway transport. The Company has no debt to the State Budget and the special purpose funds and has no tax benefits.

Attempts, undertaken by the Company in business and financials arrangement according to European standards, allowed it to attract in 2006 more than 400 million US dollars of credit funds on the favorable conditions.

[1] For reference. IFRS (International Financial Reporting Standards) are a set of standards and interpretations, which govern accounting. IFRS are approved by IASB (International Accounting Standards Board).

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