Enwell Energy PLC on Wednesday said a law introduced in Ukraine could adversely affect its licences.

The London-based oil and gas exploration and production company operates four gas and condensate fields in Ukraine: MEX-GOL, SV, VAS, and SC.

Enwell Energy shares fell 26% to 12.00 pence each in London on Wednesday morning.

The law known as No. 2805-IX, set to take effect at the end of March, enables the Ukrainian state to suspend or revoke licenses of companies if the ultimate beneficial owner of a mineral or hydrocarbon license becomes subject to sanctions in Ukraine.

‘In light of the imposition of the restrictive measures (sanctions) by the Ukrainian Authorities against Vadym Novynskyi, 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 London-based oil and gas exploration and production company with several gas and condensate operations in Ukraine said.

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