Today, on September 18, the Cabinet of Ministers of Ukraine adopted a decision on the unbundling of NJSC Naftogaz of Ukraine, thereby allowing to complete the gas transmission system operator (TSO) separation into an independent structure.
“At last, we have separated the function of transportation of natural gas from its production and supply. This is something that has failed to be done in the last three years. We have established an independent operator in full compliance with the requirements of European law. Thereby we will open up an opportunity for leveraging investment in the Ukrainian GTS”, comments Prime Minister of Ukraine Oleksiy Honcharuk.
The approval of the Naftogaz of Ukraine's unbundling model will enable to prolong the procedures started earlier and to complete the process by the end of 2019.
“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.
Apart from that, the Government has also delegated to the Ministry of Finance of Ukraine an authority to manage 100 percent of the Main Gas Pipelines of Ukraine (MGPU) PJSC, thereby ensuring independence of the new GTS operator from NJSC Naftogaz of Ukraine, as well as full separation of gas transportation activities from gas production and supply activities. Simultaneously with the transition of GTSO under the management by MGPU, the state will place the GTS under the management of a new TSO.
Having finalized the unbundling process, Ukraine will step up in the development of the gas market and ensure implementation of its commitments under the Association Agreement with the EU.