Creditor Response to Naftogaz Announcement of 9 February 2023

US $335,000,000 7.375% LOAN PARTICIPATION NOTES DUE 2022 (ISIN: XS2027393938);

EUR 600,000,000 7.125% LOAN PARTICIPATION NOTES DUE 2026 (ISIN: XS2027394233); and

US $500,000,000 7.625% LOAN PARTICIPATION NOTES DUE 2026 (REG S ISIN: XS2077601610; RULE 144A ISIN: US50050MAB19)

EACH ISSUED BY KONDOR FINANCE PLC
(TOGETHER, THE "NOTES")

LONDON, Feb. 11, 2023 /PRNewswire/ -- National Joint Stock Company "Naftogaz of Ukraine" ("Naftogaz", or the "Company") has been engaged in discussions with certain of its noteholders advised by Cleary Gottlieb Steen & Hamilton LLP (the "Group")¹. The discussions were aimed at reaching consensual debt restructuring terms in respect of the 2022 and 2026 notes issued by Kondor Finance PLC (including those notes that were the subject of a recent maturity extension from 2024 to 2026) which could command support from a broad majority of noteholders.

During the course of the discussions, the Group presented a good-faith proposal to Naftogaz for a restructuring of these debt issues. This proposal took into full consideration what the Group understands to be the financial condition of the Company as well as legitimate concerns regarding its need to fully support Ukraine's economy and its critical infrastructure at a time of exceptional national emergency caused by Russia's war of aggression.

The Group remains fully prepared to re-engage with the Company as and when the Company is in a position to substantively respond to the Group's proposal.  The Group believe that a restructuring proposal that respects the needs of the Company, the position of its private creditors, and the appropriate interests of its other stakeholders, is eminently achievable and is ready to continue to work together in good faith with the Company to reach an acceptable agreement.

Holders of the Notes are invited to contact Solomon J. Noh, Alastair Goldrein or Jonathan Griggs of Cleary Gottlieb Steen & Hamilton LLP for further information.

The contact details for Messrs. Noh, Goldrein and Griggs appear below:

¹The legal team advising noteholders transitioned from its former firm, Dechert LLP, during the scope of this engagement.

SOURCE National Joint Stock Company “Naftogaz of Ukraine”