At its meeting this Wednesday, the Cabinet of Ministers of Ukraine approved a new resolution on the unbundling of Naftogaz to finalize the separation of the independent transmission system operator (TSO) in January 2020.
“The new model enables us to create the independent TSO fully compliant with European law. I would like to thank the Energy Community Secretariat, the Ukrainian government and the Regulator for fruitful cooperation, as well as for design and approval of the new model within very tight time limits,” Naftogaz CEO Andriy Kobolyev said.
At the previous stage of the unbundling, UTG established Gas Transmission System Operator of Ukraine LLC (GTSOU), which forms a basis for the new independent TSO. UTG reassigned nearly 10 thousand employees involved in gas transmission and ensured that all necessary business processes and IT-systems are in place. The unbundling plan also stipulates how and when the assets involved in gas transmission via trunk pipelines should be transferred.
The new resolution of the government stipulates for the sale of GTSOU by UTG to Mahistralni Gazoprovody Ukrainy JSC (MGU JSC), a state-owned company, which is independent from Naftogaz group.
Along with the handover of GTSOU ownership to MGU, the government will transfer the gas transmission system under operational control of the new TSO. The government has transferred control over MGU to the Ukrainian Ministry of Finance.
The model will ensure the new TSO’s independence from Naftogaz and full separation of gas transmission operations from gas production and supply, which is the ultimate purpose of the unbundling.
The implementation of the approved model will proceed with the adoption of a special law and a number of other practical steps set out in the agreed action plan.
Completing the TSO unbundling, Ukraine will make another step in the development of its gas market and fulfil its obligations under the Association Agreement with the EU.
NJSC Naftogaz of Ukraine