By KYIV. Jan 4 (Interfax-Ukraine) – The British oil and gas company Enwell Energy Plc, which is part of the Smart Energy group of Vadim Novinsky, does not rule out the loss of hydrocarbon extraction licences in Ukraine due to the imposition of sanctions against the ultimate beneficiary of the company represented by Vadim Novinsky, as well as the adoption of new legislation in the country, which allows this possibility.
"The new legislation includes provisions that if the ultimate beneficial owner of a mineral or hydrocarbon licence becomes the subject of sanctions in Ukraine, then the Ukrainian State Authorities may suspend or revoke that licence," the company reported on the London Stock Exchange (LSE) on Wednesday.
In light of the imposition of the restrictive measures (sanctions) by the Ukrainian Authorities against Vadim Novinsky, who holds a major indirect shareholding interest in the company, as announced on 9 December 2022, the company is investigating whether the company’s hydrocarbon extraction licences may be affected by these provisions in the new law.
"The Company is reviewing the new legislation, and consulting with its external legal and other advisers in relation to the accurate interpretation of the new law, so as to enable the Company to evaluate any requisite actions," Enwell Energy said.
In the meantime, operations at the company’s licences continue as normal.
On December 1, 2022, President of Ukraine Volodymyr Zelensky signed Law No. 2805-IX on amendments to certain legislative acts of Ukraine to improve legislation in the sphere of subsoil use, which is a significant package of new procedures and reforms aimed at improving the process of regulating exploration and development natural resources in Ukraine.
The law enters into force three months after its promulgation.
Under one of the provisions of the law, Ukrainian government authorities can suspend or revoke a hydrocarbon production license from a company whose ultimate beneficial owner has become the subject of sanctions in the country.
The company’s shares after the announcement fell by 25.7%, to 12.05 from 16.23 pence apiece. At the same time, on December 2, when the National Security and Defense Council announced the imposition of sanctions against Novinsky, Enwell Energy’s share value was 25.2 pence.
