Brussels, 04/07/2016 (Agence Europe) - On Friday 1 July, the Ukrainian government's Cabinet of Ministers approved the plan to restructure Naftogaz and unbundle its gas transportation and gas storage operations, on the lines of the EU's third legislative package for the liberalisation of the internal energy market.
This decision results from the compromise obtained at the end of the negotiations between the Ukrainian authorities and the Energy Community Secretariat (of which Ukraine is a member), the World Bank and the EBRD. This action plan will set up two new undertakings: MGU for managing the Ukrainian gas pipeline network and UGSF, which will manage underground gas storage installations, explained Naftogaz, in a press release.
These two undertakings will take over the assets of the current transmission system operator (TSO), Ukrtransgaz, which will be 100% controlled by the Ukrainian state. The two new exploration companies will be governed in keeping with OECD guidelines for corporate governance of state owned enterprises. The legal instruments and action required will need to be in place in the course of 2016 and 2017.
The unbundling plan also suggest that the assets linked to gas transport can only be transferred to the new Ukrainian transmission system operator after the final decision in the litigation between Naftogaz and the Russian gas company Gazpro involving debt questions, which is still being examined by the Arbitration Institute at the Stockolm Chamber of Commerce, explained Naftogaz.
Ukrtransgaz will remain under Naftogaz control until the sale of non-essential assets and the resolution of all pending litigation relating to the company, explained the Naftogaz press release.
Naftogaz CEO, Andriy Kobolyev explained, "This decision will accelerate Ukraine's full integration into the pan-European energy system". (Original version in French by Emmanuel Hagry)