National joint-stock company Naftogaz Ukrainy has asked the German regulator (Bundesnetzagentur) to apply the general procedure for making administrative decisions to the settlement agreement signed by Naftogaz, Gazprom and its affiliates to amend the decision made in 2009 regarding the OPAL gas pipeline, the press service of Naftogaz has reported.

"Naftogaz insists on being summoned to participate in the administrative procedure and officially present its position as well as on being granted access to the text of the settlement agreement and the decision of the European Commission dated October 28, 2016, which has not been published yet," the company said.

As it was reported in late October, the European Commission approved the decision of the German regulator to amend the 2009 decision on OPAL whereby exemption from certain requirements of the Third Energy Package was granted to the pipeline operator. The amendments will significantly expand Gazprom’s access to the OPAL capacity, and thus increase gas transit through Nord Stream bypassing Ukraine.

"The OPAL settlement agreement affects the interests of some gas operators in Eastern Europe, including Naftogaz as a party to the transit contract with Gazprom and a major natural gas importer to Ukraine. According to German legislation and international obligations of the EU towards Ukraine, the interests of the concerned parties must be taken into account by the EU institutions and member states authorities when relevant decisions are made," Naftogaz said.

Naftogaz said that the OPAL settlement agreement approved by the German regulator and the European Commission restricts and distorts competition in Ukraine and other countries of Central and Eastern Europe. It enables Gazprom to considerably strengthen and abuse its already dominant position in the markets of Germany, Poland, Ukraine, Slovakia and other countries of the region. The agreement does not comply with the Energy Community Treaty as it impairs gas flows between the Energy Community Contracting Parties and the EU member states.

German legislation requires an administrative procedure when the regulator makes decisions on exemption from requirements of the Third Energy Package. It also entitles Naftogaz as an affected party to participate in the procedure and have access to the case file.