13:21 25.07.2014

Parliament does not pass law on reformation of management of Ukrainian GTS

2 min read
Parliament does not pass law on reformation of management of Ukrainian GTS

The Ukrainian parliament has not passed at second reading draft law No. 4116A on amendments to some Ukrainian laws on the reformation of the management system of the single gas transport system (GTS) of Ukraine.

Only 94 lawmakers supported the document on Thursday, July 24.

The Svoboda and UDAR factions, which insisted on amending the law, along with their amendments agreed by the parliamentary committee, did not support the document. Their amendments said that investors participating in the operator companies of the gas transport system and underground storage facilities have to be approved by parliament.

As reported, Ukraine plans to create two companies to service underground storage facilities and the gas transport system, with the participation of U.S. and European partners. The pipelines and storage facilities will remain in state ownership.

It is planned to lift restrictions on the leasing of trunk pipelines and underground storage facilities to a company/companies on a chargeable basis, without the right to fulfill the functions of the operator of the gas transport system and/or underground storage facilities.

The said leasing could be conducted only to execute liabilities taken by Ukraine in line with the law on the ratification of a protocol on Ukraine's joining the agreement on the foundation of the Energy Community on the basis of the agreement and on the conditions approved by the Cabinet of Ministers of Ukraine, taking into account the principles of observing the economic security of the state.

The enterprise, the founder and owner of which could be only the state, state enterprise (at least 51% of corporate rights in state ownership) or a legal entity (legal entities), which belong to residents of the countries of the European Union, the United States or the European Energy Community and which is the operator of the gas transport system or a member of the European network of the gas transportation system operators certified in line with the requirements of Article 10 of 2009/73/EU Directive regarding general rules for the domestic natural gas market, could fulfill functions of the operator of the Ukrainian GTS.

The same conditions apply to the operator of the underground storage facilities.

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