Naftogaz unbundling model requires revision

Source : 112 Ukraine

The adopted model of unbundling of Naftogaz of Ukraine with the transfer of its assets to "Main Gas Pipelines of Ukraine" requires revision after the decision of Stockholm Arbitration
12:50, 2 March 2018

Open source

The adopted model of unbundling of Naftogaz of Ukraine with the transfer of its assets to the “Main Gas Pipelines of Ukraine” requires revision after the decision of Stockholm Arbitration, which did not approve the possibility of transferring a transit contract with Gazprom to another operator. This was stated by the head of Naftogaz Andriy Kobolev on air of 5 TV Channel.

“The unbundling plan we had needs to be radically modernized. The supervisory board formed at the “Main Gas Pipelines of Ukraine”cannot manage the system, because the system must remain in the Naftogaz group of Ukraine," he said.  

Kobolev noted that "now this plan will have to be changed, it will be necessary to choose a new model and select a new supervisory board for the new model."

As is known, the process of unbundling - transferring the function of gas transportation from Naftogaz to an independent operator - was launched at the request of the IMF and the secretariat of the European Energy Community.

Related: Gazprom's refusal to supply gas to Naftogaz deprives it of right to take or pay in 2018

As it was reported earlier the Arbitration Institute of the Stockholm Chamber of Commerce has granted the lawsuit of Naftogaz as to compensation for the volumes of transit gas that had not been delivered by Gazprom.

According to the decision of the court, Naftogaz got a $4,63 billion compensation for the transit gas that had been agreed on, but not delivered by Gazprom. As a result of two arbitrations in Stockholm, Gazprom is to pay Naftogaz $2,56 billion. The court dismissed the demands of Gazprom that stated that the money hadn’t been paid as it was considered the fines for what they called unlawfully seized by Naftogaz volumes of the transit gas.

Had Naftogaz lost, it would have equaled the debt of $5,460 for each Ukraine family, the press service of the company counted. However, with this win, it would mean an additional $185 for each family. They also achieved a $0,5 billion reduction in the Gazprom’s gas price for 2018.

Related: Gazprom faces $500,000 daily fine until it pays $2.56 billion to Naftogaz

Система Orphus

If you find an error, highlight the desired text and press Ctrl + Enter, to tell about it

see more