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Economy 2018-10-15T04:38:03+03:00
Ukrainian news
Groysman For Eliminating Monopoly In Gas Market Of Ukraine By Splitting Naftogaz's Functions

Groysman For Eliminating Monopoly In Gas Market Of Ukraine By Splitting Naftogaz's Functions

Prime Minister of Ukraine Volodymyr Groysman has called for eliminating monopoly in the gas market of Ukraine by way of dividing functions currently concentrated by the Naftogaz of Ukraine national joint-stock company alone.

Groysman said this at the governmental meeting on Wednesday, Ukrainian News Agency reports.

"We have monstrous monopoly - the Naftogaz of Ukraine. The Naftogaz of Ukraine started to undergo a reform in 2014, but little progress has been made since then. The reform envisaged splitting functions of an operator of the gas transport system of Ukraine, gas extraction and distribution of gas. This did not happen," Groysman said.

At the same time, according to the Prime Minister, despite its monopoly, the Naftogaz lost its positions in the commercial gas market holding merely 7% of its share.

According to Groysman, this means that the Naftogaz does not consider the market of industrial consumers a priority and does not want to work for them.

"Our primary goal is de-monopolize the gas market, to divide the functions based on the European model of corporate management. De-monopolization will help lower prices," Groysman said.

As Ukrainian News Agency earlier reported, in November, the Naftogaz addressed the Antimonopoly Committee with request to assess its monopoly position in the market of natural gas in Ukraine.

In turn, the Antimonopoly Committee requested the Naftogaz to provide results of studies that would prove that the Naftogaz does not longer hold monopoly in the market of natural gas.

In 2016, Naftogaz reported a net profit of UAH 26,528.989 million, an increase from a year before when the company reported a loss of UAH 27,749.272 million.

In 2016, Naftogaz grew net revenues by 43.12% or UAH 48,621.156 million to UAH 161,382.827 million year over year.

Naftogaz is the leading enterprise of the fuel and energy complex of the country, which is engaged in the exploration and development of deposits, drilling, transportation and storage of oil and gas, as well as gas supply to consumers.