The unbundling of “Naftogaz” should take place by the end of 2019 and exclusively in accordance with European standards

There is yet another warning for the Ukrainian authorities from Western partners about the delay of unbundling of “Naftogaz”.

Europe and America point out they do not need a process for the sake of the process itself. The unbundling of “Naftogaz” should take place by the end of 2019 and exclusively in accordance with European standards.

The main messages of the partners of Ukraine addressed to the authorities:

  1. There is a clear message to the authorities – unless a new gas transmission system operator is formed and certified on the basis of PJSC “Main Gas Lines of Ukrainian”, Ukraine may lose its prospects as a transit state.
  2. Ukraine should immediately complete the unbundling of “Naftogaz” and certify “MGLU” as a GTS operator, providing it with the necessary political, legal and technical capabilities to ensure that this new certified operator will be in charge of the transit from January 1, 2020.
  3. In order to provide the measures necessary for the unbundling during the time remaining until the end of the current transit contract (less than 15 months), “Naftogaz” and “MGLU” should agree upon and implement a concrete action plan on unbundling. And in this regard, a memorandum signed a few months ago between the supervisory boards of these two companies is only the first step, but not at all a decisive one.
  4. It is unacceptable that in the last 2 years almost nothing has been done by the authorities for the unbundling. In the coming weeks, it is necessary to hold a meeting under the facilitation of the EU representatives to determine concrete measures to ensure timely unbundling.

A brief conclusion.

A branch of Ukrtransgaz will not be able to replace the creation of a certified GTS operator on the basis of MGLU, and, accordingly, will not ensure the preservation of the transit potential of Ukraine. If we continue to follow the plan of “Naftogaz” on replacing the unbundling with its ersatz, we will lose the transit and confidence of the Europeans.

Let us emphasize the clear and consolidated position of Western stakeholders about the need for a real unbundling of Naftogaz as a guarantee of the continuation of gas transit through the Ukrainian gas transportation system after 2019.

The government should immediately implement the recommendations of our partners in building a civilized transit infrastructure based on our gas transmission system. Preservation of the gas transit is vital for Ukraine.

Viktoriya Vojtsitska
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