The Cabinet of Ministers may approve unbundling model of Naftogaz within the next week

The Cabinet of Ministers of Ukraine may approve the model for separating the gas transmission system (GTS) from Naftogaz of Ukraine before the next trilateral negotiations in the Ukraine-EU-RF format, scheduled for September 19.

This was announced by Minister of Energy and Environmental Protection Olexiy Orzhel.

“We have achieved a good speed in this process. We are trying to find the right solution even before the tripartite negotiations take place on September 19. I am convinced that we will soon be ready to present a general picture of the unbundling. There is even an ambition that at the next meeting of the Cabinet of Ministers a decision on the unbundling will be made”, he said during a press conference with Naftogaz-Gazprom: Energy Security, Gas Transit and European Integration, Interfax-Ukraine reports.

According to the Minister, the Ownership unbundling model has been adopted as the basis. At the same time, he did not specify other details of the expected decision, in particular, who would become the owner of the GTS operator.

In turn, the executive director of Naftogaz of Ukraine Yuriy Vitrenko noted that NJSC will not be the owner of either the gas transmission operator or the gas transmission system:

“The GTS is owned by the state, but the existing regulatory framework does not allow even a separate operator to have contractual relations with the state as the owner of this GTS that would comply with European regulations so that it has sufficient freedom regarding the management of the gas transmission system. Therefore, now European institutions look at this problem and decide how to call the model of separation of the operator under such conditions”.

The spin-off of the independent GTS operator is scheduled for January 1, 2020.

As it is known, the preferred for Naftogaz model of unbundling was ISO (Independent System Operator), which protects the interests of Ukraine in the framework of arbitration against Gazprom ($12 billion). Unlike the OU (Ownership unbundling) model, which the Groysman Cabinet of Ministers insisted on, ISO does not require the privatization of the Ukrainian GTS.


Tags: Naftogaz, GTS

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