Volodymyr Kistion tells about progress in the reform of Naftogaz of Ukraine

The Government has ensured gradual process of separation of functions of transportation and storage (unbundling) and is introducing international practices in corporate governance of companies, the shareholder of which is the state (in particular, Naftogaz of Ukraine). Vice Prime Minister of Ukraine Volodymyr Kistion told about that during the forum "Energy Security for the Future: A New Vision, Strategy, Innovation."

“Pursuant to the Third Energy Package we effectively introduce market rules in the gas sector. Last year the Government fixed an economically reasonable price for gas, thereby making it possible for the first time in 20 years to turn Naftogaz of Ukraine into a non-deficient company, said Volodymyr Kistion.

He informed that the Government is actively working on the unbundling process for the Naftogaz of Ukraine.

"The Government provides on consistent basis legal support for the unbundling process – the separation of functions of transportation and storage of natural gas. The process is complex, but step by step we are moving forward", said the Vice Prime Minister.

He reminded that in fact the procedure of unbundling can occur only after a separate ruling issued by the Arbitration Institute of the Stockholm Chamber of Commerce.

"The actual procedure of unbundling is possible after a positive decision of the Stockholm arbitration. I am convinced that the claims of the Ukrainian side to Gazprom are quite reasonable, though I expect for a fair ruling in the dispute", said Volodymyr Kistion, recalling that recently there had emerged certain information about another ruling of the Arbitration Institute of the Stockholm Chamber of Commerce in which the Institute upheld the claims of" Naftogaz of Ukraine" against the Russian "Gazprom" on gas price and canceled a ban on re-exports.

Volodymyr Kistion also told about the introduction of the principles of Organization for Economic Cooperation and Development (OECD) in corporate governance of NJSC "Naftogaz" and other companies in which shareholder is the state.

"I want to emphasize that Ukraine sees the process of introduction of a corporate governance reform in companies whose shareholder is the state. For strategic energy companies such as NJSC "Naftogaz of Ukraine", NNEGC "Energoatom", NPC "Ukrenerho" - it means a modern standard of corporate governance in line with the principles of the Organization for Economic Cooperation and Development", stressed Volodymyr Kistion.

Apart from that, he noted that the Government had developed and submitted to the Parliament a bill that stipulates for the introduction of best European practices of corporate governance.

"For the first time during Ukraine's independence years the management of public companies having strategic importance will be distanced at most from political influence", said Deputy Prime Minister.