11:27 09.02.2015

Appeal court upholds decision on revoking cabinet resolution on obligatory purchase of Naftogaz gas by industrial companies

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Appeal court upholds decision on revoking cabinet resolution on obligatory purchase of Naftogaz gas by industrial companies

The administrative court of appeals in Kyiv has rejected counterclaims made by the Cabinet of Ministers of Ukraine and national joint-stock company Naftogaz Ukrainy against a district administrative court of Kyiv ruling which declared clauses 1-4 of cabinet resolution No. 647, obliging large industrial consumers to only buy Naftogaz Ukrainy gas, as invalid.

The Association of Independent Gas Extracting Companies of Ukraine said the ruling was issued on Thursday, February 5.

"After studying the counterclaims filed by the defender and a third party supporting the defender against the ruling of the district administrative court of Kyiv of December 16, 2014 in case No. 826/17772/14 we believe that the counterclaims cannot be satisfied. The ruling of the court of first instance is legal and grounded, it was issued observing all requirements of procedural and substantive law," the association’s press service reported, citing the ruling.

As reported, on December 16, 2014 the district administrative court canceled cabinet resolution No. 647 of November 26, 2014, according to which around 170 large industrial consumers were obliged to buy natural gas from national joint-stock company Naftogaz Ukrainy only, until February 28, 2015.

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