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24 24.3
26.4 26.95
Economy 2019-10-15T04:58:45+03:00
Ukrainian news
Supervisory Board: Naftogaz Should Control Gas Transportation System Until 2020

Supervisory Board: Naftogaz Should Control Gas Transportation System Until 2020

Naftogaz, Naftogaz of Ukraine, gas transportation system, GTS

The supervisory board says the Naftogaz of Ukraine national joint stock company should continue to control the gas transportation system of Ukraine until 2020.

This is said in the letter of the chairperson of the supervisory board to Prime Minister of Ukraine Volodymyr Groysman and members of the coordination council for reforms in the energy sector, the wording of which was made available to the agency.

"The result of the Stockholm Arbitration means that Naftogaz should control the assets of the gas transportation system until the end of 2019," reads the statement.

By this letter the supervisory board of Naftogaz informs the coordination council for reforms in the energy sector on the status of discussions of questions of unbinding with the supervisory board of Mainstream Gas Pipelines of Ukraine.

Naftogaz notes that Mainstream Gas Pipelines of Ukraine cannot be an independent operator and control any assets until the contract between Naftogaz and Gazprom expires. Meantime, the Ukrainian legislation does not allow the government to control the gas transportation system directly.

The supervisory board of Naftogaz believes that Mainstream Gas Pipelines of Ukraine should be a subsidiary of Ukrtransgaz until the end of 2019 and the majority in the supervisory board of Mainstream Gas Pipelines of Ukraine should belong to Naftogaz.

Naftogaz proposes to form the supervisory board of Mainstream Gas Pipelines of Ukraine of seven members, including four members from Naftogaz and three independent directors.

"The management of the Mainstream Gas Pipelines of Ukraine must be acceptable for Naftogaz. The management cannot comprise people who were sacked or suspected of corruption," reads the letter.

As Ukrainian News Agency earlier reported, in October 2017, Ukrtransgaz set up a branch the Operator of the Gas Transport System of Ukraine.

The new branch was set up with the purpose of accumulating all assets, material-technical and other resources to be later transferred to the Mainstream Gas Pipelines of Ukraine public joint-stock company.

In November 2016, the Cabinet took a decision to create a new operator of the GTSU - the Mainstream Gas Pipelines of Ukraine (MGPU), as part of a broader strategy to revamp the Naftogaz of Ukraine, national major operator of the gas market.

On June 14, 2017, the Cabinet approved a list of assets and a plan of transferring the assets from Ukrtransgas to the MGPU.

The unbinding plan for Naftogaz envisaged that the assets must be transferred to the MGPU within 30 days after a ruling is handed down in the arbitration trial at the Arbitration Institute of the Stockholm Chamber of Commerce between the Naftogaz of Ukraine and the Gazprom Russian gas monopoly over the disputed contracts on gas transit in the period of 2009-2019.

Naftogaz Board Chairman Andrii Kobolev has requested that Prime Minister Volodymyr Groysman postpone the planned unbundling of the company's gas transmission and storage operations for two years, until the end of its contract for transit of Russian gas with the Gazprom gas company (Russia).

Больше новостей о: Naftogaz Naftogaz of Ukraine gas transportation system GTS

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