Ukraine Approves Unbundling Decree

Ukraine’s cabinet approved November 9 a resolution to create a state company to run the country’s gas grid. The government is planning to restructure the 100% state-owned Naftogaz Ukrainy, demerging the transport and storage divisions from everything else, following the resolution of July 1, 2016, Naftogaz said November 14.

The government has also approved the corporate governance plan for the company that will operate the high-pressure gas grid, which takes account of the proposals put forward by the European Bank for Reconstruction and Development and by the Energy Community, it said.

Naftogaz, which now owns the gas grid, said it welcomed the government’s decision to create a new operator, saying it fully meets the philosophy of reforming the Ukrainian gas market and European regulations. “We expect that we can start transferring assets into the new structure after the Stockholm arbitration institute has made its decision next spring,” said Naftogaz’ CEO Andriy Kobolev.

Naftogaz and Gazprom are suing each other at the Arbitration Institute of the Stockholm Chamber of Commerce. Gazprom is pursuing a take-or-pay claim and Ukraine is pursuing a ship-or-pay claim. Naftogaz is separately suing Russia. 

The government has also approved a resolution that amends the plan to restructure Naftogaz that separates gas storage and withdrawal from transport, but Naftogaz’ statement gives no details on this.

William Powell