Ukrnafta on the US Stock Market

The experts think this decision will somewhat animate the corporate securities market, where Ukrnafta's shares hold a top position and have been classified as blue chips. According to the experts, a breakthrough onto developed countries' markets in the form of American Depository Receipts (ADR) will also encourage the rise of Ukrnafta stock on the domestic market. A representative of international legal firm Baker Mackenzie, Borys Datskiv, announced this at the shareholders' meeting. In early July, one will be able to buy and sell Ukrnafta ADRs in the United States.

Meanwhile, stock market experts stress that this stirring at the tip of the iceberg, a tip represented by the blue chips and especially Ukrnafta, will not last long, because the current rise in oil prices is a seasonal, rather than long-term phenomenon. In addition, experts point to the unsatisfactory current state of Ukrnafta's equipment, substantial reduction of explored reserves contained in large fields, and the lack of strategic investors interested in enhancing the technological level of production. All this is bound to affect the demand for Ukrnafta stock abroad. In addition, the company's dream of finding a strategic investor has recently been shattered completely. Last March, the Cabinet approved selling 10.95% of the company's charter capital through an exchange. The money is expected to go to the state budget. As one senior manager said, Ukrnafta cherishes a weak hope of getting 20% of the receipts.