As a consequence of the ongoing coronavirus pandemic, the board of directors has resolved that additional measures should be undertaken to guarantee all our existing capital commitments, and thus also the long-term financial standing of our company. After a prolonged and highly detailed review, our leadership has determined that it is far too challenging to project a formal end of this crisis, and we do not have the epidemiological expertise to do so with sufficient accuracy. Therefore, it is deemed paramount that we do our utmost to preserve the immediate and future interests of our organization and the members of our workforce. Whilst we are satisfied by the progress made over the past few months in terms of vaccine development, there remains a number of pressing concerns for our current operations. These principally pertain to several new variants that have recently emerged that appear to be both more transmissible and cause disease with enhanced severity, and could have the potential to yield further restrictions accordingly. From this perspective, we are basing all our assumptions on the basis that historical epidemics of this nature endure for approximately three years, and that we should be adequately prepared to function under these conditions for the duration of such a timeframe. Ultimately, the economic effects of this disaster have affected our corporation considerably, and will result in both revenues and profits being significantly below projections at the start of the year. Moreover, we have no desire to be wholly dependent upon government support in any of the jurisdictions we operate in to pay salaries or meet other costs, and intended to take remedial action to resolve this issue. In his announcement of these new policies, our Deputy Chief Executive Officer Aleksandr Filyurin remarked:
“I am very pleased that we have managed to organize a deal with our owners to secure the long-term future of Rusneftegaz and our upcoming projects. Personally, I felt that it would have been a real shame if we had to make any of our staff redundant after all they have done for us since the beginning of the pandemic. It is the same as if we had needed to cancel any of the projects we have been planning, a lot of which have been in the works for quite a few years now. I do not think it is unreasonable to say that it has been an unexpectedly tough few months, and being realistic, we have no real idea how long all of this will continue. That is why, as a board, we took the decision to approach the ownership about an arrangement where we can provide guarantees to all our staff and contractors at what is a very unstable time. We do not want anyone who works for this great organization having to worry about their job, especially when there is so much to worry about already at this time. I hope now that we have eased some of the worries, and we can be ready to rebound when all this is over.”
Thus, we can thus disclose that following lengthy and protracted negotiations, our shareholders have agreed in principle to disburse additional investment and loans if necessary to meet all our contractual arrangements that commenced prior to this health emergency. Hence, this new pact will ensure that all employee wages and other remuneration will be paid over the next twenty-four months, regardless of our business performance. Although we still intend to offer all our administrative personnel the opportunity to reduce their working hours next year, no changes will be imposed on staff that do not wish to participate in the scheme, nor will there be any compulsory redundancies in the imminent future. Likewise, it also denotes that when this endemic concludes, we shall have an ample sum of money to not only restart our investment program, but to do so at an expedited rate. While we anticipate announcing amendments to this plan after an internal analysis soon, the designated increase in cash is expected to largely mitigate the delays enforced upon us. Under the terms of the accord, the proceeds are only to be utilized if there are insufficient funds to otherwise meet the aforementioned costs, potentially leading to liquidity issues arising. However, the board of directors does not expect to use these reserves in the near-term, and are to remain solely as a contingency. In the instance that this capital is required, it must be noted that the stipulations of the deal dictate that the borrowings are to bear no interest and mature in ten years. Any questions regarding this settlement should be directed to the appropriate managers, or via the conventional channels. We necessitate your cooperation and understanding with this matter.