The main advantages of Investing in the Ukrainian Oil Fields

The chief exec officer of UFA, Valentin Lysacek, was not happy with the result of the first meeting between mother board of directors associated with UFA and the creditors associated with UFA. He was dissatisfied in addition to thought that this discussion would be more productive if more moment was handed to the credit card companies of UFA. He believes that the participants associated with the board of UFA should not be too hasty to adopt decisions for the reason on the business. They have to think of the many factors and benefits of his or her decision.


Valentin Lysacek: “The discussion created some useful and important points. UFA had was hoping to have a direct approach using both economic reports and discussions together with the two years experience regarding our experts. Sadly, the first period created not any result considering that the creditors did not consent with your offer. In addition, one lender stated that his firm will not negotiate with the organization until the users give him a great answer concerning often the chance of selling the organization. “

The masters associated with UFA have to help give a answer back by March 1st, which is viewed as a very tight deadline by many people engaged in the business. In the other hand, on least a person creditor claimed that he desires the particular owners of UFA in order to make another offer in advance of March 1st. If this masters do not make an offer on this pointed out date, he expects the creditors to push the issue in order to subsequent month’s meeting. In this instance, that is more likely that will the company will likely be wiped out, so it is significant to action fast.

The particular CCCB [the Core Club regarding Russian Business] feels that that is almost impossible to get the organization to make it for at least one more 3 years without any considerable support via investors. Relating to them, a possibility it can make it for on least 1 year is in the event that that is able to be able to secure an additional seventy million roubles through an agreement with a other. It is very less likely that the owners involving UFA will accept to this particular proposal since that suggests that they would have to give up most regarding their possession, such as the property of most of their own properties, and pay a new very high dividend.

Since a good conclusion, UFA should find a new manager who is willing in order to sign a good one-year or a good three-year agreement, based on whether it can be a one-year or the three-year syndication. They have to as well provide total economic support during the interval of typically the arrangement. In the event that these conditions are fulfilled, then the company is definitely predicted to emerge from typically the difficulties it can be enduring around a positive condition. However, some believe that this company will not really survive to get long and that the economic problems in Russia will not necessarily permit it to manage its current position. However, it is usually very crucial for UFA to find a mate for the company and even that partner should come from some sort of company with a quite solid foundation. Regarding instance, it is rather essential of which the partners have at least five years of experience in the arena.

On the various other hands, there are furthermore a number of drawbacks that are connected with buying UFA. Typically the biggest problem is this risk included because making an investment in the real residence market place can be incredibly risky. The main risk is related to typically the possibility of finding a consumer for the syndication that will do not really satisfy all the circumstances. The other risks require the chance of paying too little money and even losing a great deal of money, while this most popular risk is of which the distribution can not necessarily produce enough dollars in order to fulfill the demand.

In spite of these kinds of issues, the government has thought we would offer UFA special positive aspects in order to stimulate investors for you to devote inside the country. One regarding these advantages is often the so-called bread and even butter law, named after Finance Minister Alexey Uzhov. Regulations stipulates that a man will probably be granted a one-year or maybe a two-year be, based upon on the age of his friends and family. The one-year stay will allow a man or woman to earn to help two million rubles as well as about $700, 000 per year. Furthermore, during this time period, a person will probably be granted to get payments equivalent to one percent of their opportunities.

The second major advantage offered by often the ufa approach is this unsuspecting special oilemen gain. This benefit was created in particular for oil drillers in addition to producers who acquire his or her income through the selling of gas. According to be able to this particular law, these folks will be granted three years of free engine oil cash flow. This means that they will not include to pay virtually any levy for the period involving time whenever they get this particular benefit. Moreover, in line with the found world-wide economic circumstances, more of the Russian essential oil companies are suffering from this lack of investment cash, and they need all the aid they can get.