The Verkhovna Rada exempted Ukrainian GTS Operator from taxation in the process of unbundling

At its meeting on December 3, the Verkhovna Rada of Ukraine supported the draft law 2359-1 on the second reading, which exempted transactions for the transfer of property from VAT necessary for the transmission of natural gas to a new operator of the gas transmission system (GTS). 328 deputies voted for the decision. This was reported on the website of the Cabinet of Ministers.

“Now the specified property is state-owned as part of gas pipelines and other facilities used for gas transmission and the activities of GTS operator”, the statement said.

The draft law makes it possible to complete the unbundling procedure of Naftogaz of Ukraine in accordance with the requirements of the Third Energy Package.

According to Naftogaz’s unbundling plan, the new operator of the gas transmission system will be Operator of the Gas Transmission System of Ukraine LLC (OGTSU). By a decision of the Government, the OGTSU will be transferred to the ownership of Main Gas Pipelines of Ukraine JSC (MGU), 100% of the shares of which are transferred to the Ministry of Finance.

The new operator, which the state will transfer to the management of the gas transmission system for a period of 15 years, will be able to be launched fully from January 1, 2020.

Recall that the National Energy and Utilities Regulatory Commission approved the preliminary decision on certification of  Ukrainian GTS Operator”.

Earlier it was reported that Naftogaz estimated the value of the assets of the GTS, which will be transferred to the operator, at 3.2 billion UAH. To assess the cost, they were independently evaluated.

Tags: The Cabinet of Ministers, gas, Naftogaz, contracts, Kobolyev, legislation, NEURC, EU, Top management, energy market, UGSF, gas transit, GTS, RF, foreign affairs, Main gas pipeline of Ukraine, Honcharuk, unbundling

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