: :inin Kyiv (EET)

Decision on amending Naftogaz charter halted due to public reaction – Kubiv

Ukraine`s Ministry for Economic Development and Trade announces it has suspended a decision on amending the charter of National Joint Stock Company Naftogaz of Ukraine, which provides for the withdrawal of state-owned subsidiary Ukrtransgaz out of Naftogaz`s control, due to high public attention to this issue.

”Due to high public attention to this issue, I, as minister, have suspended the decision on Ukrtransgaz,” Minister Stepan Kubiv was quoted by the ministry on Twitter as saying.

It is reported that a meeting is planned to be held on Monday with the participation of Prime Minister Volodymyr Groysman and all the stakeholders.

”I am ready to admit that the decision has been made without proper consultations … it is a technical and, to some extent, political issue. In this regard, the decision has been suspended by me as minister. Today the meeting will be held with the participation of the prime minister and all the stakeholders, and we will discuss our actions in essence and in form, but I want to emphasize that we will go through setting up independent governance within Naftogaz and other companies engaged in extraction and transportation of gas,” Kubiv said.

As UNIAN reported earlier, on September 7, 2016 the Economy Ministry issued a decree, which adopted a new charter of Naftogaz, according to which the company was no longer control Ukrtransgaz, the operator of the Ukrainian gas transportation system. Other amendments were introduced into the document.

In response to the ministry`s decision, Naftogaz`s press service announced on September 16 that such amendments jeopardized the allocation of a $500 loan for Naftogaz necessary to carry out gas purchases, and also ran contrary to the loan agreement with the European Bank for Reconstruction and Development.

Also, the company`s press service reported on Facebook that the Cabinet had previously approved a resolution which authorized the Economy Ministry to only recommend that Naftogaz establish the supervisory board of Ukrtransgaz, consisting of five members. Such a recommendation should take place only after 30 days from the date of completion of the arbitration dispute between Naftogaz and Russia`s OAO Gazprom.

While the ministry has reasoned its decision by the necessity to act in compliance with the provisions of the Third Energy Package, according to which the gas transport system operator must be an independent company.


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