Poltava Petroleum Company (PPC), an asset of the British JKX Oil & Gas Group, reaffirms that since October 2021, the Group has prioritized the divestment/sale of its Russian assets, a strategy approved by the Board of Directors even before the full-scale invasion of Ukraine by the forces of Russian Federation. Detailed information on this decision is available here https://otp.tools.investis.com/clients/uk/jkx1/rns/regulatory–story.aspx?cid=519&newsid=1514070.
In early February 2022, JKX Oil & Gas was in the final stages of closing a sale agreement for its Russian assets. However, following Russia’s full-scale invasion of Ukraine, the buyer unilaterally withdrew from the agreement.
However, JKX Oil & Gas Group continues its efforts to sell its Russian entities. The divestment process is currently delayed beyond the timeline initially planned by the JKX Oil & Gas Group’s Board of Directors due to numerous international trade sanctions imposed by various jurisdictions where the Group operates.
In compliance with UK legal requirements and all applicable laws and regulations:
i. Since March 2022, JKX Oil & Gas has ceased any control or influence over its Russian companies. This is confirmed by the exclusion of information about Russian assets from the Group’s financial statements, filed with the UK Companies Registry. The report can be viewed here.
ii. None of the JKX Oil & Gas entities receive payments/dividends from, nor make payments to, Russian companies.
JKX Oil & Gas Group is actively working with external legal advisors to explore appropriate legal avenues to divest its Russian entities in accordance with all applicable laws and regulations.
The divestment is expected to be completed in the coming months.