Michael Bakunenko: The ban on gas exports, ignoring the law and alienation of business - the current state of the industry in Ukraine

Interview of the Chairman of the Board of Directors of JKX Oil&Gas with Interfax-Ukraine

Text: Dmytro Koshovyy

On the British JKX Oil & Gas and its ties with Ihor Kolomoisky

Recently there was news about Russia's nationalization of JKX Oil & Gas assets. Does the company still have any business activities in this country?

We planned to sell the Russian assets back in 2021. In February 2022, the deal was supposed to be finalized, but due to the outbreak of a full-scale invasion, the potential buyer unilaterally withdrew from the deal. The US, EU, UK and Ukrainian sanctions also came into effect, and we complied with them. The Board of Directors decided to cease management and control of these assets and continue to look for another buyer. But we did not even have time to do this: in 2023, we were deprived of any rights as an investor, and in early March this year, the Koshekhabla District Court of Adygea called our company "extremists," nationalized all assets and banned JKX Oil & Gas from operating.

The court cited repeated public statements by the parent company of JKX Oil & Gas, starting on February 24, 2022, regarding the termination of its activities in Russia and compliance with all sanctions restrictions as the main grounds for its decision. But this alienation of private property came as unexpected news to us.

What are the company's plans to protect ownership of assets in Russia?

Our lawyers are currently studying the situation and developing a position for further action. The company will use all international legal mechanisms to recover from the Russian state the full compensation of its investments and losses incurred.

In November 2023, JKX Oil & Gas announced that its largest shareholder, Eclairs