KIEV, Sept. 28 ??“ Naftogaz Ukrayiny, the national oil and gas company, is on the verge of bankruptcy as it is facing $1.5 billion in losses this year, Prime Minister Viktor Yanukovych said Thursday.

Naftogaz is Ukraine??™s biggest taxpayer and the government relies heavily on the company for meeting budget revenue forecasts. The company handles about 80% of Russian natural gas shipments to Europe via Ukrainian pipelines.

???Due to excessive tax pressure and [ineffective] management over the past 1.5 years, this company is now on the verge of bankruptcy,??? Yanukovych said at a government meeting.

This is the strongest wording that has so far been used by the government to describe the company??™s ailing financial health.

The company??™s problems may lead to a downgrade of its credit rating by leading agencies, making it even more difficult for the company to borrow money to pay the debts.

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