The Cabinet of Ministers of Ukraine and the Supervisory Board of the NJSC Naftogaz of Ukraine have reached an agreement on the extension of the contract with the company's Board for a year, and the government will make a decision on Wednesday. It was announced by the Prime Minister Volodymyr Groysman during a meeting of the Cabinet of Ministers.
The government has adopted a number of conditions that must be met by Naftogaz. Among them, there are three main on which agreements were reached: from January 1, 2020, to obtain a separate operator of the Ukrainian gas transmission system, which will be fully certified according to EU principles and laws; to increase gas to 18 billion cubic meters per year; to reduce payments to top management.
“Unfortunately for the last 5 years, the company’s management has not taken the necessary steps to achieve these goals. We still have time until January 1, 2020, so we set very clearly the requirements to the supervisory board that the signing of a new contract should provide rules very clear: the first is to ensure the provision of gas transmission system and certification under European legislation for the continuation of transit from January, 2020. And the second: determination in accordance with the goals that were hardened by the government and presented by the way by the NJSX Naftogaz of Ukraine should produce Ukrainian gas no less than 18 billion cubic meters of gas, and not like today – a little more than 15 billion annually”, Volodymyr Groysman said.
The Prime Minister also asked government representatives in the Supervisory Board to monitor the implementation of these decisions, which will be adopted today by the Government of Ukraine.
It was said earlier, that the Cabimet of Ministers of Ukraine announced an open tender on the post of Naftogaz’s the Head of the Board. The decision was accepted on March 6, 2019.
Naftogaz is preparing to transfer the gas transmission system to the reverse mode if there is no gas transit contract with the Russian Federation
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