Creditor update in relation to Naftogaz

US $335,000,000 7.375% LOAN PARTICIPATION NOTES DUE 2022 (ISIN: XS2027393938) (THE "22 NOTES"); AND

US $500,000,000 7.625% LOAN PARTICIPATION NOTES DUE 2026 (REG S ISIN: XS2077601610; RULE 144A ISIN: US50050MAB19) (THE "26 NOTES", TOGETHER WITH THE 22 NOTES, THE "NOTES")

EACH ISSUED BY KONDOR FINANCE PLC FOR THE SOLE PURPOSE OF FINANCING LOANS TO NATIONAL JOINT STOCK COMPANY "NAFTOGAZ OF UKRAINE" (THE "COMPANY" OR "NAFTOGAZ")

LONDON, April 10, 2023 /PRNewswire/ -- On 30 March 2023, Cleary Gottlieb Steen & Hamilton LLP ("CGSH") sent a letter (the "30 March Letter") to Naftogaz on behalf of a group consisting of more than ten investors (the "Investors") collectively holding well in excess of 50% of the 22 Notes and nearly 20% of the 26 Notes.

The 30 March Letter (i) confirmed that the Investors are unable to support the "Revised Working Scenario" set out in the Company's management presentation made public on 10 March 2023 and the Notice to Noteholders dated 21 March 2023, (ii) set out the reasons why the Investors are unable to provide their support, and (iii) expressed the Investors' hope that the Company would engage in substantive negotiations with the Investors and CGSH to resolve the ongoing default under the Notes.

As conveyed in earlier press releases, the Investors are fully supportive and committed to Ukraine, and Ukraine's brave and steadfast efforts to defend its freedom and territorial integrity in the wake of the Russian invasion.  It is also the view, however, of many in the investment community that upholding and honouring commercial relationships to the fullest extent possible under the current circumstances is the best way to ensure (x) the long-term continuity of capital markets funding for Ukrainian borrowers and (y) that Ukraine's economy adjusts as rapidly as possible to new circumstances.

Noteholders are invited to contact Solomon J. Noh, Alastair Goldrein, James Armshaw or Jonathan Griggs of CGSH if they would like to receive a copy of the 30 March Letter and for any further information.

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

SOURCE National Joint Stock Company “Naftogaz of Ukraine”