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Ukraine to Ratify Pro-EU Natural Gas Market Liberalization Law

The Ukrainian parliament is moving to ratify the pro-EU natural gas market liberalization law in all three required readings.

According to the law, state-run NJSC Naftogaz in order to give an equal access to gas pipelines for each market participant, will be divided to three different enterprises by type of activity: marketing, extracting and transportation.

“Naftogaz needs financial aid. So the EU says: Give us transparency and we’ll give you aid,” Tom Mayne, an analyst at UK-based anti-corruption NGO Global Witness, said to euobserver.com

While the Ukrainians have fulfilled the European Union’s demands, the EU funds for country’s Gas Transit System modernization still remain in doubt due to the necessity of another condition; the adjusting of domestic gas tariffs on a level with world prices.

The current domestic price of natural gas paid by households and a utility company does not cover gas import costs.

“The document has been accepted in order to establish transparent rules in the market and to make them clear for our European partners”, Naftogaz of Ukraine official explains to local media.

According to the law, Ukrgazdobycha, Ukrtransgaz and Gas of Ukraine will become independent companies. They now exist as affiliated enterprises of NJSC Naftogaz.

The new law gives market participants possibility to freely choose suppliers, take part in delivery tenders and auctions.

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