Ukraine's Naftogaz plans IPO in 2013

Ukrainian state energy firm Naftogaz, the owner of a pipeline network connecting Russia's Gazprom to its European markets, plans to float its shares on the market around 2013, it announced today.

Naftogaz carries Russian gas to Europe and buys natural gas from Gazprom to resell in Ukraine. It is due to receive $2.75 billion in transit fees from Gazprom this year.

Naftogaz Chief Executive Yevhen Bakulin told an energy conference today; "We are planning ... an IPO so that shares can be freely bought and sold on the market.... This work should take between a year and a half and two years".  Bakulin also said Naftogaz spent $1.5 billion on imports of Russian gas last month which reached 6.3 billion cubic metres.

Ukrainian laws bar the privatisation of Naftogaz and Bakulin said they would need to be changed before the share sale.

Source: Reuters