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Government Approved Unbundling Model of NJSC “Naftogaz of Ukraine”

September 19, 2019, Kyiv On September 18, the Cabinet of Ministers of Ukraine approved the step plan of unbundling of the gas transmission function from NJSC “Naftogaz of Ukraine”, thereby allowing to accomplish unbundling in the beginning of January 2020.

JSC “MAHISTRALNI GAZOPROVODY UKRAINY” welcomes the decision of the Government, which would allow to carry on the measures undertaken previously and finalize them in the shortest possible time.

According to the resolution of the Government, 100% share of JSC “MAHISTRALNI GAZOPROVODY UKRAINY” shall be transferred to the Ministry of Finance of Ukraine, as one of the steps to ensure the independence of the future gas transmission system operator (TSO) of Ukraine - LLC “Gas Transmission System Operator of Ukraine”. In turn, 100 percent of stake in the charter capital of LLC “Gas Transmission System Operator of Ukraine” will be transferred to JSC “MAHISTRALNI GAZOPROVODY UKRAINY”.

"We have developed the model of unbundling of the Naftogaz of Ukraine in line with Ukraine’s commitments to implement the provisions of the Third Energy Package. It is crucial that we have managed to kick start the situation ahead of the Trilateral negotiations between Ukraine, the EU and the Russian Federation. Reliable and uninterrupted operation of the Ukrainian gas transmission system (GTS) is essential for suppliers and consumers from the EU countries. Depoliticizing the issue of GTS management will give the country a stronger position in future negotiations”, said Oleksiy Orzhel, Minister of Energy and Environmental Protection of Ukraine.

“We welcome yesterday’s decisions of the Government to unbundle the transmission function. This is a very important and significant event in the energy sector of Ukraine. The new Government has made the necessary decisions very quickly – it is a completely new pragmatic approach. This would allow to successfully fulfill the commitments made by Ukraine under the Association Agreement with the EU, to have a stronger negotiation position in the trilateral negotiations with the Russian Federation, and also will give a new powerful impetus for continuing liberalization and reforming of the gas sector through the establishment of the independent TSO,” emphasizes Oleksandr Lisnichenko, the Acting CEO of JSC “MAHISTRALNI GAZOPROVODY UKRAINY”.